02 August 2010

What LP Executives, Auditors and CEO’s Need and Want? A Solution with 1,000 Percent Return-On-Investment (ROI)…. Webinar: gaspland@reteltechnologies.com

Turbo ROI
What Do LP Executives and CEO’s Need and Want?  A Solution with 1,000 Percent Return-On-Investment (ROI). What better information do you want from your company, district, division, operation or business investment? Here is the list I used when I ran a store for 12 years.  Share price is a stretch, but I was the 3rd most profitable unit out of 1,200.
  • More Productivity (Do More With Less)  
  • More Sales
  • Less Internal and External Theft
  • Better Customer Service
  • A Safer and Cleaner Operation
  • Increased Bottom-line Profits
  • Increased Share Price
  • Increased ROI
ROI (Return on Investment) is probably the most important calculation one needs to make to ensure the long-term viability of their business. It is not enough to build in a profit margin on the product or service being offered. One must track with proficiency the amount of dollars being invested into attracting sales and how much ROI those dollars put back into the business. If the investment meets too little return, a product line is doomed to fail in the long-term.  I do not intend to give you a thorough analysis of the ROI calculation process. Calculating an accurate ROI is hard to do, but explaining the full scope of ROI calculations in less than 1000 words is far more difficult.  As such, this article is only intended to introduce you to the basic concepts behind ROI calculations. 

Here is a very basic equation for calculating the ROI:  

ROI = [ (Payback - Investment) / Investment) ] X 100

Your payback is actually the total amount of money earned from your investment in your company. Investment relates to the amount of resources put into generating the given payback.  In our little ReTel Technologies example, let’s say you have 2,000 retail locations; let us say they are either Convenience Stores or Quick Service Restaurants.  ReTel is watching or auditing each store 3,500 times a month, watching the video of key performance indicators, that your want them to audit, for a fee of only $99.00 a month.  

Your increase in sales, based on past performance, will be about $2,000.00 a week but for our purpose will cut that in half so you increase your sales by $4,000 dollars per location.  Your ROI = (4,000 – 99) / 99 X 100 = 3,940% (To Simple) OK let us say I am have right and we will even subtract your cost of good.  Let's say your mark up is 30%.  Now $4,000.00 becomes $1,200.00, which is your net profit. $1,200 – $99 /99 X 100 = 1,112%.  

So what would the annual increase to the bottom line?  Only $13,344,000.00.  

Either way you want to calculate the ROI on this technology you really need to hear the story on why Amazon needed a tool like this, why these Silicon Valley venture capital investors see it as a good idea and why a very low cost “Proof of Concept” within your organization is a real good idea.  Don’t trust my calculations, I only started in retail in 1977, do your own test. Just figure out what key performance indicators you need to audit or inspect on a regular basis. (If you need help with this part, I can help.)  

This will help put the “Prevention” back into LP and put any criminal on notice that “If they try to steal from here, they will be caught”.  Also, your understaffed and overworked LP/AP team will be more productive and they will generate better evidence, if someone's temptation and perceived opportunity get the best of them.  Finally, in my experience if your employee’s perceive that you have better controls in place they all seem to do their job better.  They never know when they are being audited. 

George Aspland (gaspland@reteltechnologies.com) the CEO of ReTel Technologies www.ReTelTechnologies.com is putting on a number of webinars later this week and next week.  They only last about 30 minutes and they give you a very good and quick overview of the proven technology being used by companies like SHELL OIL, DUNKIN DONUTS, JACK-IN-THE-BOX, KASA, FRAICHE and others that are getting phenomenal results.  

Just e-mail George at gaspland@reteltechnologies.com and he or someone from his team will set up a mutually convenient time for your webinar, do it now, they only have so many open slots to prove their concept.  ReTel is on Pacific Coast Time so you can always schedule your appointment later in your work day. - Please let me know what you think about this solution, I think it's fantastic!

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