Our Business is Improving Your Bottom Line!
|
Our Business is Improving Your Bottom Line!
|
|
Partners:
Since 1995, Digital Gateway has helped over 800 companies drive their business operations successfully with their innovative e-automate dealer management software.
MWA Intelligence offers leading-edge technologies, world-class customer service and many years of expertise in the office equipment and utilities vertical markets. We deliver comprehensive solutions to companies in need of remote asset management and improved service standards. |
PIP Project or "Profit Improvement Potential" PIP is a 10 point audit of the following areas:
With our industry’s most commonly used business model placing the burden of profits squarely on service and supply divisions, or aftermarket, we have developed a series of reports or audits used specifically to find areas of opportunity where bottom line profits can be impacted. Using a combination of proven and tested reports and projects, JDC will be able to identify areas where efficiencies can be increased or costs reduced in order to help guide management along the path to higher profits. There is no one “Silver Bullet” that is the secret to higher profits, but instead many different areas that, when added up, contribute to achieving that GP Goal of 52% in Service and 44% in supply. You can’t simply take CPC and slap a 52% Margin against it and call it done, you may have just priced yourself out of business! You had better dig into the operating CPC of the equipment and see if it is running as efficiently as possible. Excess service discounts are a quick way to insure that we can not achieve our goals as well. If we sell most of our service at 45% margin, how can we possibly achieve 52% GP? Managing service discounts is an absolute must since we must make a profit once on the equipment, but 60 times on the aftermarket! Critical to achieving a lower operating cost per copy is a reasonable reschedule for parts percentage. For each additional call beyond the 8% target you are adding an additional $100—$150 to the cost of that call. You are now throwing labor dollars at a parts problem. Purchasing inefficiencies are another way many dealers “Bleed Green” through parts obsolescence. Failure to identify parts with descending usage and altering their purchasing accordingly will insure that these parts will later have to be written off and thrown away. What happens when that customer calls in who thinks their supplies are free and wants “3 of each?” Your profits just went out the warehouse door! Controlling your cost of goods is mission critical to achieving the desired 44% margins in supply. Beware of customers who have hundreds or even thousands of your dollars on their shelves! This series of analysis is designed to help pinpoint these areas of opportunity and show you how to address them, hence the name “Profit Improvement Potential”
For more information on this project, email jack@jackduncanconsulting.com or call 469-287-2605
|
|
Send mail to
info@jackduncanconsulting.com with questions or comments about this web
site.
|
