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Dec 7

Pulling Profit Out of the Hat – Expense (part 4 of 4)

Let’s review. Over the past few months, the newsletter has suggested Profit is within your control. Profit is a result of 3 components working together: price, volume, and expense.

Your first challenge was to accept the fact that you control your profit. You were then challenged to raise your non-program prices and carefully review all line items for program work. Last month, you were challenged to take control of your volume by strategically meeting with Adjusters, Agents, Property Managers, and other business referral partners. Today, we come to expense. Are you ready? 

The #1 controllable factor in the realm of expense is Labor. How much profit would you gain if you lowered your Labor by 1%? Take a moment, run the calculation. What about 5%? Does the profit you regain as a result inspire you to take control of this component of profit?

What if I told you it was possible to make a significant impact on labor rate in just 5 minutes of your time every day? Truly, 5 minutes. Remember, the Magician is a master manipulator, hiding the truth, and preventing your profit from appearing. Be fooled no longer!
Labor is the result of the effort of people. People. Not machines. How we interact and treat people directly results in the output they produce. If good energy and behavior is put in to people, greater motivation, inspiration, and productivity comes out of each person. This is how you control your labor!
Below you will find a 5 minute Daily Labor Reduction Plan. I challenge you to do this every day for an entire week. Then I challenge you to do it every day for an entire month. Track your labor % at the start and the end of the month. You will see a shift! Many of our clients have taken this challenge with reservation, yet raved about the results. Those that consistently meet on a daily basis see a positive improvement of at least 1% in the first month. Join them!
5 minute Daily Labor Reduction Plan:

  1. Gather the entire team in the dispatch area 10 minutes before the start of business (production, office, sales, everyone)
  2. Have them stand in a circle facing each other
  3. Tell them: We need some positive energy in this place. Every morning we will huddle like this before starting our day. I want each of you to think of 1 positive thing you saw another team member do yesterday & share it with us all. I’ll start. Yesterday I saw…
  4. Proceed around the circle. If they don’t have a positive to share, skip them and come back. If they still can’t think of one, tell them they must share 2 tomorrow.
  5. Repeat daily

The only person standing in the way of greater profit is you. Do something today! Take back control.