They Really Are Important!
Nice article I stumbled across in Forbes I have taken the opening of each of the points made by the author Martin Zwilling, and then provided a click through to read it all in his words. Enjoy.
Sales is simply defined as income from customer purchases of goods and services, minus the cost associated with things like returned or undeliverable merchandise. Of course, everyone is happy when the numbers keep going up, but the data needs to be mined constantly for ….. READ MORE
Customer loyalty and retention.
Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers. You build customer loyalty by treating people how they want to be treated … READ MORE [wd_hustle id=“sign-me-up” type=“embedded”]
Cost of customer acquisition.
The total cost associated with acquiring a new customer, including all aspects of marketing and sales. Customer acquisition cost is calculated by dividing total acquisition expenses by total new customers … READ MORE
Obviously measuring staff productivity is important, and the reasons why are obvious. If you do not know how your staff is doing, then how can you truly know the inner workings of your own company? Staff discontent can put your company in serious … READ MORE
Size of gross margin.
The gross margin is calculated as a company’s total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. The higher the percentage, the more the company … READ MORE
Monthly profit or loss.
Profit is not simply the difference between the costs of the product or service and the price being charged for it. The calculation must include the fixed and variable costs of operation that are paid regularly each month no matter what. These include such items as rent or mortgage payments … READ MORE
In economics, overhead costs are fixed costs that are not dependent on the level of goods or services produced by the business, such as salaries or rents being paid per month. In any growing business… READ MORE
Variable cost percentage.
By definition, variable costs are expenses that change in proportion to the activity of a business. Fixed costs and variable costs make up the two components of total cost. These include the “cost of goods sold” and … READ MORE
The raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale. Inventory represents … READ MORE
Hours worked per process.
Beyond ratios, you need to keep metrics on total labor hours expended for various functions. Labor is likely to be your most important and most expensive raw input, especially in … READ MORE