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Weekly Furniture Management Tip #13 - A Good Leader--

Furniture World Magazine

on

   
by Roy Miller, President
Country View Woodworking

A GOOD LEADER....

  1. recognizes the impact of closing 1 additional sale out of 20.
  2. understands that a million dollar retail corporation with a 43% gross and a 10% NPBT can increase net profit 21.5% with a 5% increase in revenues when SG & A (selling, general and administrative expenses) remain constant.
  3. encourages sales training as a weekly necessity.
  4. grasps the merit of gathering competitive information as a never ending process.
  5. ensures when associates sell more, they are rewarded accordingly.

 

   Example 1  Example 2
 Revenues  $1,000,000  $1,050,000 (up 5%)
 Less Cost of Goods  $570,000  $598,500
 Equals Gross Profit  $430,000 =43%  $451,500 = 43%
 Less SGA Expenses  $330,000  $330,000
 Equals Net Profit Before Tax  $100,000  $121,500

$121,500/ $100,000= 21.5% increase in net profit.

These weekly “Monday Morning Management Tips” are jointly provided by both Country View Woodworking and Furniture World.


About Country View Woodworking: CVW offers a broad selection of hardwoods and hi-build finishes including oak,cherry, maple, quarter sawn, distresses and glazed. Comments about these weekly tips can be directed to Roy Miller (Country View Woodworking http://www.cvwltd.com) care of editor@furninfo.com.

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