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Gain a Deeper Understanding of Business Operations at Your Truckstop with These Four Calculations
Business owners today have more information coming in from more places than ever before in history. There are a number of different ways owners and managers can look at the data to better understand their operations and their customers.
During The NATSO Show 2016, retail expert Tom Shay shared his insight into several key areas operators should look at, plus he offers 22 different calculations on his website, ProfitsPlus.org, that operators can use to dig into their data. “These calculators tell you what they mean and how the formula behind them,” he said.
Here are four calculations Shay outlined during the session:
Financial ratios calculator: “It is the little nuances and things we pay attention to in our business that make a big difference,” Shay said.
Personal productivity ratios: “Look at how many profitable items someone sold. There is a difference between cashiers vs. salespeople,” he said.
Turn rate: “Turn rate is one of the most phenomenal factors that will drive the bottom line and ROI,” Shay said. “There are two ways we can calculate the inventory turn rate. A cost method and an at retail method. It is personal preference. Look at over the past three years and if you are improving your turn.”
The cost per square foot for inventory: “The very first day you pay for anything, the cost of the inventory goes up and it will continue to go up. If I can sell it before the cost of inventory goes up, we call that playing with house money,” Shay said.
/// The NATSO Show 2017 will be held January 21 - 24 in Savannah, Georgia. Learn more about the NATSO Show here.
Photo Credit: Chuck Fazio/NATSO
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