do i really want to cut back on serivce to save costs
DESCRIPTION
A presentation given to members of the Tourism Industry to encourage them to continue the drive for quality.TRANSCRIPT
Do I really want to cut back on service to save costs?
Three areas of focus
• My colander approach to managing sanity and reputation
• Why facts are friends• Why cluster management worked for me and
can work for you
Reputation
Emphatically NO
Reputation
• The perception of our customers• Whether we are a good employer• Our financial standing with the bank and
credit ratings• Our reputation as a good or bad payer with
our suppliers• Whether the statutory authorities see us as a
high or low risk• My relationship with Revenue and Customs
“Richard, you need to change your brain for a colander”
My colander approach to managing sanity and reputation
My colander approach to managing sanity and reputation
• The front end• The back end • The middle
The front end
• Drive top line sales• Getting the right price• Add value• Keep customers loyal• Distribution
The front end
Marketing• Is it a cost or an investment?• Measure, manage and review it• Do everything Wendy has suggested!
The back end
But is it a cost or an investment?
Example one• Put me out of business
Example two• £250,000
The middle
Why facts are friends• How much profit did I make last month?• How much profit did you make last month?• What was my cash flow between Christmas
and Easter?• What is your cash flow between Christmas
and Easter?
The middle
Why facts are friends• Increase visibility to help control• Set targets and measurement• Review
The middle
Payroll management• But is it a cost or an investment? • People adding value to my business
The middle
How do I pay for this?• Understand what and how I purchased• Know my top twenty • Manage my brutal costs • Challenge everything
Cluster management works for me.
• The whole is worth more that the sum of the equal parts
• But collectively?• A case study
In summary
Protect your front end• Drive sales• Have a strong pricing policy• Train your staff never to give your customers a
reason not to come back• Use marketing as an investment and measure
what you do.
In summary
Protect your back end• Don’t be caught out by cutting back• Find cost effective ways to stay on top
In summary
Protect the middle• Invest in your payroll by having the best you
can afford doing the best they can.• Train your staff to help drive your profit• Use Facts as Friends
In summary
How do I pay for it?• Understand what and how you purchased.• Know your top twenty• Manage your brutal costs• Challenge everything
Clustering
• Find ways of working together to drive efficiency
• Identify those people or organisations who can help your business move forward
As the sayings go:
‘Sales is vanity, profit sanity’
As the sayings go:
‘Hope for the best and plan for the worst’
But do…
….Buy a colander
Thank you
Any questions