namm presentation

NAMM Presentation

KPI (Key Performance Indicators)

Drive Growth

Drive Growth and Profits with a Defined Company Culture

George Hines George’s Music, Inc.

Interior Photo

Interior Photos

ResearchOwners – Sales - Administrative

Universal Laws:“Law of Expectation”

You get what you expect

Which do you prefer?

$1,000 $10,000

$100,000 +

New Economy “Do More with Less”

Problems:– Economic Recession– High Unemployment– Increased Costs– More Competition– Consumer Demands– Profit Pressures from Internet– Others?

Solution

GET CLARITY – KNOW WHAT YOU WANT

Use KPI To Create

1. Accountability2. Establish Action Plans

3. Measure Progress

KPI – To Drive Sales

SALES: - Set Specific Goals for:

1. PPD – People per day2. TPD – Trans. per day3. Conversion % PPD/TPD4. Items per Sale5. Avg $ per transaction6. Gross Sales7. Gross Margin %


Total Days in the Month 31 Todays Date 31

Sales Manager KPI ReportJanuary 2012 Performance Dashboard

SALES GoalPPD (People Per Day) 9,300TPD (Transactions Per Day) 3,720Conv % (PPD/TPD) 40.0%Items Per Sale 3.2AVG $ per Trans $ 55.00 Gross Sales $ 204,600 Gross Margin % 42.1%

KPI - To Drive Sales



SALES Goal ActualPPD (People Per Day) 9,300 9,138TPD (Transactions Per Day) 3,720 3,780Conv % (PPD/TPD) 40.0% 41.4%Items Per Sale 3.2 3.3AVG $ per Trans $ 55.00 $ 56.25 Gross Sales $ 204,600 $ 212,625 Gross Margin % 42.1% 42.3%




SALES Goal Actual ForecastPPD (People Per Day) 9,300 9,138 9,138TPD (Transactions Per Day) 3,720 3,780 3,780Conv % (PPD/TPD) 40.0% 41.4% 41.4%Items Per Sale 3.2 3.3 3.3AVG $ per Trans $ 55.00 $ 56.25 $ 56.25 Gross Sales $ 204,600 $ 212,625 $ 212,625 Gross Margin % 42.1% 42.3% 42.3%

KPI - Operations

OPERATIONS:

1. Inventory B.O H.2. R.O.I. – Total Inventory3. SQI score – Service Quality Indicator4. COGS - Cost of Goods Sold5. Sales per S.F. (10,000 s.f.)6. Gross Sales7. Gross Margin $

KPI - Operations

Total Days in the Month 31Todays

Date 31

Operations Manager KPI ReportJanuary 2012 Performance Dashboard

Operations GoalInventory BOH 400,000R.O.I Total Inventory 2.40SQI Score 92%C.O.G. Sold $ 120,000 Sales per s.f. (10,000s.f) $ 20.00 Gross Sales $ 200,000 Gross Margin $ $ 80,000

KPI - Operations


Date 31


Operations Goal ActualInventory BOH 400,000 398,000R.O.I Total Inventory 2.40 2.71SQI Score 92% 93%C.O.G. Sold $ 120,000 $ 122,684 Sales per s.f. (10,000s.f) $ 20.00 $ 21.26 Gross Sales $ 200,000 $ 212,604 Gross Margin $ $ 80,000 $ 89,920

KPI - Operations



Operations Goal Actual ForecastInventory BOH 400,000 398,000 398,000R.O.I Total Inventory 2.40 2.71 2.71SQI Score 92% 93% 93%C.O.G. Sold $ 120,000 $ 122,684 $ 122,684Sales per s.f. (10,000s.f) $ 20.00 $ 21.26 $ 21.26 Gross Sales $ 200,000 $ 212,604 $ 212,604 Gross Margin $ $ 80,000 $ 89,920 $ 89,920

KPI – Customer Service

CUSTOMER SERVICE

1. Mystery shop scores – min 85%2. Mystery phone shops – min 90%3. Customer on line reviews – min 4 stars4. Vip Contacts 5. Events in stores – goal attendence6. Staff Training Sessions



Date 31

Customer Service KPIJanuary 2012 Performance Dashboard

Customer Service GoalMystery Shop 92%Phone Shop 92%On Line Reviews 15VIP Contacts 400In Store Events 4Training Session 8



Date 31


Customer Service Goal ActualMystery Shop 92% 94%Phone Shop 92% 96%On Line Reviews 15 18VIP Contacts 400 422In Store Events 4 5Training Session 8 9



Date 31


Customer Service Goal Actual ForecastMystery Shop 92% 94% 94%Phone Shop 92% 96% 96%On Line Reviews 15 18 18VIP Contacts 400 422 422In Store Events 4 5 5Training Session 8 9 9

KPI – Finance Department

Control Cash and Maintain Profitability

Retail Owners Institute

KPI - Finance

• Finance:1. Inventory Turnover2. Gross Margin % or $3. Profit or Net Income Before Tax % or $

4. Current Ratio – Assets to Liabilities5. ROA - Return on Assets6. GMROI 7. Operation costs as % of sales8. “Other” income in $

Turnover

KPI - Finance

Net Income – Pre Tax

Debt To Worth

Current Ratio Trends

Return on Assets %

KPI - GMROI

Small Goods Performance

sm goodssales Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total

2009 313357 284671 292537 283699 269951 275187 289602 292138 267815 279016 276186 528172 36523302010 306271 292278 301089 276737 267481 266719 284599 288316 268924 267057 287292 534846 36416092011 305649 298554 302001 275049 265630 263770 294554 288541 257555 272885 292545 568745 36854782012 308554 302105

GM$ Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total2009 166636 150768 155964 149836 140752 142973 150474 151255 139545 141554 142892 271411 19040602010 166524 153551 157898 144220 138900 138504 147399 149873 141258 141166 149144 281184 19096212011 167854 154512 158741 143866 137859 137666 142439 152441 145112 142544 151445 284110 19185892012 169852 155245

COG Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total2009 146721 133902 136573 134762 129199 132214 139128 140882 128269 132471 133294 253069 17404842010 145887 138726 135441 132517 123541 128215 137200 138443 124221 125891 134221 253661 17179642011 144567 129630 134553 131183 127771 126105 131616 125973 122986 124168 133641 252642 16848352012 141254 138524

GM% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total2009 53.18% 52.96% 53.31% 52.50% 52.14% 51.95% 51.96% 51.78% 52.11% 52.52% 51.74% 52.09% 52.35%2010 52.37% 52.54% 55.02% 52.11% 53.81% 51.93% 51.79% 51.98% 53.81% 52.86% 53.28% 52.57%2011 52.70% 56.58% 55.45% 52.31% 51.90% 52.19% 55.32% 56.34% 52.25% 54.50% 54.32% 55.58%2012 54.22% 54.15%

BOH $ Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Total2009 935414 935063 1007319 1013011 1013326 1022475 981980 1007427 1024257 1063772 1116278 1082367 122026882010 1024014 987380 1013304 1051535 1063541 1058996 1059922 1045619 1053361 1112593 1213175 1169621 128530612011 1145520 1125305 1115034 1090082 1096755 1117742 1070355 1092874 1058173 1035977 1080399 1061810 130900262012 1022698 1032532

Quarterly Vendor Budgetingvendor alloc

new qtrJBL 16000TAYLOR 50000SABIAN (AIMM) 10000ZILDJIAN 8000FENDER 115000KORG (AIMM) 15000VOX (AIMM) 10000ROLAND 75000PEAVEY 24000PEARL (AIMM) 14000LINE 6 rebate 15000HOSHINO (AIMM) 160000AT (AIMM) 32000DIGITECH 15000SHURE 36000CASIO 12000YAMAHA (AIMM) 120000$misc 40000

allocationtotals: 767000

Monthly Vendor Budget

vendor alloc alloc act diffnew qtr Month 1 Month 1 Month 1

JBL 16000 4800 4200 (600)TAYLOR 50000 15000 16540 1540 SABIAN (AIMM) 10000 3000 3020 20 ZILDJIAN 8000 2400 2200 (200)FENDER 115000 34500 29552 (4948)KORG (AIMM) 15000 4500 5020 520 VOX (AIMM) 10000 3000 3480 480 ROLAND 75000 22500 24500 2000 PEAVEY 24000 7200 6800 (400)PEARL (AIMM) 14000 4200 4400 200 LINE 6 rebate 15000 4500 3875 (625)HOSHINO (AIMM) 160000 48000 52500 4500 AT (AIMM) 32000 9600 9745 145 DIGITECH 15000 4500 3850 (650)SHURE 36000 10800 9650 (1150)CASIO 12000 3600 3750 150 YAMAHA (AIMM) 120000 36000 38700 2700 $misc 40000 12000 6928 (5072)

allocationalloc. actual difftotals: 767000 230100 228710 (1390)

Quarterly Breakdown

vendor alloc alloc act diff alloc. act diff alloc. act diff

new qtr Month 1 Month 1 Month 1 Month 2 Month 2 Month 2 Month 3 Month 3 Month 3over/under

JBL 16000 4800 4200 (600) 4800 4154 (646) 6400 6450 50 (1196)TAYLOR 50000 15000 16540 1540 15000 15840 840 20000 21200 1200 3580 SABIAN (AIMM) 10000 3000 3020 20 3000 3050 50 4000 4125 125 195 ZILDJIAN 8000 2400 2200 (200) 2400 2325 (75) 3200 3457 257 (18)FENDER 115000 34500 29552 (4948) 34500 31200 (3300) 46000 41500 (4500) (12748)KORG (AIMM) 15000 4500 5020 520 4500 4400 (100) 6000 5925 (75) 345 VOX (AIMM) 10000 3000 3480 480 3000 2950 (50) 4000 3650 (350) 80 ROLAND 75000 22500 24500 2000 22500 21250 (1250) 30000 30150 150 900 PEAVEY 24000 7200 6800 (400) 7200 7450 250 9600 8900 (700) (850)PEARL (AIMM) 14000 4200 4400 200 4200 4100 (100) 5600 5600 0 100 LINE 6 rebate 15000 4500 3875 (625) 4500 4250 (250) 6000 5250 (750) (1625)HOSHINO (AIMM) 160000 48000 52500 4500 48000 50100 2100 64000 64250 250 6850 AT (AIMM) 32000 9600 9745 145 9600 9450 (150) 12800 12875 75 70 DIGITECH 15000 4500 3850 (650) 4500 4650 150 6000 4650 (1350) (1850)SHURE 36000 10800 9650 (1150) 10800 10200 (600) 14400 11750 (2650) (4400)CASIO 12000 3600 3750 150 3600 3450 (150) 4800 3450 (1350) (1350)YAMAHA (AIMM) 120000 36000 38700 2700 36000 39500 3500 48000 49500 1500 7700 $misc 40000 12000 6928 (5072) 12000 10225 (1775) 16000 15774 (226) (7073)

0

allocationalloc. actual diff alloc. actual diff alloc. actual diffQuarter total

totals: 767000 230100 228710 (1390) 230100 228544 (1556) 306800 298456 (8344) (11290)755710 -11290

“If It’s Written It’s Real”

Use “KPI” to Drive Growth: • Create Accountability• Establish Goals & Actions• Measure Progress

Thank You!a Defined Company Culture

George Hines - President George’s Music, [email protected]

Streams of IncomeIncrease Profits

Streams of Income

Fast Pay Discountsa) Current Programs –

b) Future Programs

c) Credit Card Opportunities

d) One Time Events

Streams of Income

Co-op Programs

Strategy – • Catalog or Buyers Guide

• Online Sponsorship

• Events

• Promotions

Streams of Income

Rebate Programs

• Current Programs

• Future Programs- Annual- Quarterly

Streams of Income

Registration andProcessing Fees

a) Lesson Registration

b) Repair Paperwork Fee

c) Band Instrument Processing Fee

Streams of Income

Warranty & ExtendedService Agreements

• Replacement Plans - Internal vs. External

• Band Instrument or Rental

• Threshold Discussion

Streams of Income

Freight Negotiations

• Vendor Related

• UPS – FedEX

• Music Freight

Streams of Income

In-Store Paid Events

• ‘Home Grown’ Events

• Guitar Repair

• Uke Classes

• Home Recording

Streams of Income

Othersa) Lease Negotiations

b) Upgrade Items

c) Bin Items

d) Investment Incomee) Assorted Discounts –

Printing, Check Guarantee, Office Supplies, CC, Airline

KPI – Other Income

Track Results

Thank You!a Defined Company Culture

George Hines - President George’s Music, [email protected]

namm presentation

Documents

sales sales

gross margin

sales total days

gross sales7

wantuse kpi

kpi operationsoperations

kpi operationstotal

total inventory3