I am a big believer in reducing costs and quotations to the lowest common denominator possible. I read a great example recently. Please allow me to share.
Post recession, Hard Rock Café had a corporate goal of adding $150 million to its bottom line. Most would agree that this is a number beyond our comprehension. The average worker would surely have the thought “I’m just a waiter here…what does that have to do with me?” The answer is obviously…everything! You control the sale. How else can the company grow?
Rather than managers saying to staff “we’ve got to grow by $150 million”, they brought it down to the employees by telling them they needed to make 50 cents more on every check. Suddenly a once outlandish goal seemed very attainable to all involved.
Obviously the flooring business needs more than a 50 cents per transaction uptick. But imagine what a $50 raise in your average ticket would accomplish. Your fixed overhead would not change, resulting in an increased percentage to the bottom line. Very helpful!
This week take time to discuss various add-ons and upgrades to a sale that could result in a $50 increase, at minimum, in the average ticket. Break down the costs and objectives for your staff, just as Hard Rock did. There are a finite number of customers walking through any business’ doorway. It should be your goal to make every sale all that it can be. Your bottom line will thank you for doing so.
Tom Jennings
