By Tom Crouser
So simple it is deceptive, so basic we don't do it, yet it has increased sales in shop after shop. The old Army bromide said, "Things that get done are what the Commander looks at." That's true with your total sales as well.
Sales go up when the team measures where they are in relation to the goal today; not tomorrow nor at the end of the month, but today, while we still have a chance to do something about it. And it doesn't do any good to just know total sales; total sales have to be related to the budget and goal. But if you are like most shops, you simply measure your progress by comparing this month's total with this month last year or last month. That's a waste, for things have changed. You could have reduced staff or overhead or, conversely, added staff and overhead since last year. So, all progress must be measured against a budget that provides positive cash flow on today's costs: forget about last year.
We'll tell you more about how we can mess up setting a monthly sales budget next month—so be sure to look for us.
Now we assume we have a monthly budget. That's the B in your morning PBG. Now, let's set a goal. Huh? Thought the budget was the goal? No, the budget is not the goal—meet the budget in most places and you get to keep your job for another month. Big deal. Your job is to beat your budget decisively, and we define that as being 20%. So, if your budget is $100k for the month, your goal is $120k. When you and your team bring sales of $105k in; well, adequate job, but not great job. Don't expect anyone to get excited for doing what you are supposed to do. However, pop a $135k on a goal of $120k (and thus a $100k budget), then you are going to make some serious money and that calls for a "Great job. Attaboy!"
Anyway, the Goal is the G in your PBG report. Now you need to calculate the P, or Projection. How do you do it? Basically, divide sales through last night by the number of days you have been open this month, and multiply by the number of days you are going to be open. Running out of space here, but if you want full specifics of a daily PBG click on over to: http://www.crouser.com/twitter/pbg.pdf.