Measure for Success


We measure our cost per unit very closely and price our services accordingly. In the service business, unlike the business of selling products, it is sometimes hard to project how much service customers will require. Some are more demanding than others. When pricing you had better account for that upfront. We measure and monitor monthly what our costs are doing and adjust pricing accordingly if necessary. If we ever have a customer who turns out not to be profitable, and some do (large and small), we will look to ensure profitability or in the worst case scenario develop a mutually beneficial transition away from our service to another viable alternative. Again, we take this very seriously as the relationship is the most valuable piece, even if we are no longer providing service.

This measure of our success also depends on certain key positions within the company. The Controller, CIO, Vice President of Sales, Director of Operations and Director of Human Resources all have a significant effect on our core profit centers. In fact, these individuals form our executive team, which measures, monitors and evaluates all of the costs and services mentioned above. In our company, we take it a step further; each member of the executive team is compensated based on the net income of the company. This adds an extra incentive, increasing their motivation to grow revenues (through retention and new business) and reduce expenses. Therefore, the larger the total net income pool and the smaller the percentage of expenses, the more they earnjust like Greg and me!




Inside the Minds Stuff - Inside the Minds. Managing for Profit. Leading CEOs on Key Strategies for Increasing Profits Exponentially in Any Economy
Inside the Minds Stuff - Inside the Minds. Managing for Profit. Leading CEOs on Key Strategies for Increasing Profits Exponentially in Any Economy
ISBN: N/A
EAN: N/A
Year: 2004
Pages: 130

flylib.com © 2008-2017.
If you may any questions please contact us: flylib@qtcs.net