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08/01/01
Chris Tank
By the way, an update on our route
profitability. I have been able to analyze our routes for daily
profitability and as a result we are selling off some of our outlying
areas. More could follow, but at this point we are turning our
attention to a restructure of our service department with a major
project on customer retention. We think we need to stop the bleeding
first before we can continue improving profitability by routes.
We have also done some major self
evaluations in conjunction with our local business consultant/guru
guy, and are coming up with a plan to turn ourselves into a world
class company. (i.e.. There's this Baldridge model that we used
for the evaluation... we scored somewhere around 20%, which shows
us where we need improvement).
These numbers are based on sales in June and therefore do not
accurately represent the true picture, but it gives an idea and
is a quick down and dirty look at the business... $106682.60 worth
of yearly revenue had a loss of $64,646.20, so it cost us $171,328.80
to deliver to a bunch of far away customers, who had the gall
to say, as we were introducing them to their new mat service company
"What mats?..Oh yeah, whatever.". We sold the business for $143000...
a nice influx of cash. We should have another smaller chunk of
business to sell, so we are on a roll. Even our in-house mechanic
and plant manager are selling junk that's been sitting around
gathering dust.
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