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Drive Growth and Profits: Utilizing KPIs to Enhance Performance

Discover how Key Performance Indicators can drive sales, operations, customer service, and financial control to boost growth and profitability in your company. Learn to establish goals, measure progress, and leverage KPIs effectively.

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Drive Growth and Profits: Utilizing KPIs to Enhance Performance

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  1. NAMM Presentation KPI (Key Performance Indicators) Drive Growth

  2. Drive Growth and Profits with a Defined Company Culture George HinesGeorge’s Music, Inc.

  3. Interior Photo

  4. Interior Photo

  5. Interior Photos

  6. Research Owners – Sales - Administrative

  7. Universal Laws: “Law of Expectation” You get what you expect

  8. Which do you prefer? $1,000 $10,000 $100,000 +

  9. New Economy “Do More with Less” Problems: • Economic Recession • High Unemployment • Increased Costs • More Competition • Consumer Demands • Profit Pressures from Internet • Others?

  10. Solution GET CLARITY – KNOW WHAT YOU WANT Use KPI To Create 1. Accountability 2. Establish Action Plans 3. Measure Progress

  11. KPI – To Drive Sales SALES: - Set Specific Goals for: 1. PPD – People per day 2. TPD – Trans. per day 3. Conversion % PPD/TPD 4. Items per Sale 5. Avg $ per transaction 6. Gross Sales 7. Gross Margin %

  12. KPI – To Drive Sales

  13. KPI - To Drive Sales

  14. KPI – To Drive Sales

  15. KPI - Operations OPERATIONS: 1. Inventory B.O H. 2. R.O.I. – Total Inventory 3. SQI score – Service Quality Indicator 4. COGS - Cost of Goods Sold 5. Sales per S.F. (10,000 s.f.) 6. Gross Sales 7. Gross Margin $

  16. KPI - Operations

  17. KPI - Operations

  18. KPI - Operations

  19. KPI – Customer Service CUSTOMER SERVICE 1. Mystery shop scores – min 85% 2. Mystery phone shops – min 90% 3. Customer on line reviews – min 4 stars 4. Vip Contacts 5. Events in stores – goal attendence 6. Staff Training Sessions

  20. KPI – Customer Service

  21. KPI – Customer Service

  22. KPI – Customer Service

  23. KPI – Finance Department Control Cash and Maintain Profitability

  24. Retail Owners Institute

  25. KPI - Finance • Finance: 1. Inventory Turnover 2. Gross Margin % or $ 3. Profit or Net Income Before Tax % or $ 4. Current Ratio – Assets to Liabilities 5. ROA - Return on Assets 6. GMROI 7. Operation costs as % of sales 8. “Other” income in $

  26. Turnover

  27. KPI - Finance

  28. Net Income – Pre Tax

  29. Debt To Worth

  30. Current Ratio Trends

  31. Return on Assets %

  32. KPI - GMROI

  33. Small Goods Performance

  34. Quarterly Vendor Budgeting

  35. Monthly Vendor Budget

  36. Monthly Vendor Budget

  37. Quarterly Breakdown

  38. “If It’s Written It’s Real” Use “KPI” to Drive Growth: • Create Accountability • Establish Goals & Actions • Measure Progress

  39. Thank You!a Defined Company Culture George Hines - President George’s Music, Inc. ghines@georgesmusic.com

  40. Streams of Income Increase Profits

  41. Streams of Income Fast Pay Discounts • Current Programs – • Future Programs • Credit Card Opportunities • One Time Events

  42. Streams of Income Co-op Programs • Strategy – • Catalog or Buyers Guide • Online Sponsorship • Events • Promotions

  43. Streams of Income Rebate Programs • Current Programs • Future Programs • Annual • Quarterly

  44. Streams of Income Registration and Processing Fees • Lesson Registration • Repair Paperwork Fee • Band Instrument Processing Fee

  45. Streams of Income Warranty & Extended Service Agreements • Replacement Plans - Internal vs. External • Band Instrument or Rental • Threshold Discussion

  46. Streams of Income Freight Negotiations • Vendor Related • UPS – FedEX • Music Freight

  47. Streams of Income In-Store Paid Events • ‘Home Grown’ Events • Guitar Repair • Uke Classes • Home Recording

  48. Streams of Income Others • Lease Negotiations • Upgrade Items • Bin Items • Investment Income • Assorted Discounts – Printing, Check Guarantee, Office Supplies, CC, Airline

  49. KPI – Other Income Track Results

  50. Thank You!a Defined Company Culture George Hines - President George’s Music, Inc. ghines@georgesmusic.com

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