Moneyball News — Summer 2024
Motivational Moment
“It’s only after you’ve stepped outside of your comfort zone that you begin to change, grow, and transform.”
— Roy T. Bennett, Author
PARTNER SPOTLIGHT
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#becausewecare
STORY TIME
Yielding Power
Certain KPI’s have been around for ages. Does that mean it is in your best interest to remain in that comfort zone? Let’s play the would you rather game.
% Gross Profit: Would you rather have 50% Gross Profit and sell 1 unit a month for $2,500 Gross Profit? OR have 40% Gross Profit and sell 2 units at $2,000 Gross Profit for a total of $4,000? Wouldn’t Inventory Yield be a better measure of optimal pricing success?
% Wages of Revenue: A white paper shared that a service industry wage target should be 30%-35% of revenue. Assume each employee generates $10,000 revenue per month. Would you rather have 4 employee with wages at 30% of revenue generating $28,000 gross profit? OR 8 employee with wages at 40% of revenue for $48,000 gross profit? OR 12 employees with wages at 50% of revenue for $60,000 gross profit? Do you focus on 30% or $60K? Which model is easiest to retain and recruit people?
Marketing as a % of Revenue: When you spend $10K a month in marketing (or discounts) you produce an extra $50K in gross profit. In months where you spend $20K you get a $100K more. When you spend $30K you get a $150K more. Would you rather spend $10K, $20K, OR $30K in marketing each month? Why limit marketing investment to a % of revenue or $ per store target if it produces positive results?
Keep in mind the end goal. Would you rather squeeze the maximum $ dollar out of every employee, product and ad, OR fill up the piggy bank more?
A Community Goal
They Shoot They Score
A special thanks to Wayne & Tyler Neis for bringing the community together. My brother Mike had a quintuple bypass in December. Wayne & Ty put a golf tournament together to get Mike’s old hockey pals and friends together. Everyone loved the idea and the WGF Golf Classic was born. Amazing to see the tremendous support from across the country. 124 golfers, a plethora of sponsorships, and an amazing day of friendship and family that delivered smiles. Like shooting a puck or casting a rod, thank you Wayne, Ty and the community with the big score!
