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How to find sales per man hour

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It is an indicator of how busy or productive your staff are. It represents the number of sales each person on shift is responsible for making. Though what is important to know and understand is the benchmark for sales in your industry, that is, what are the optimum sales per labour hour for your business. Therefore, each of those three staff members are responsible for making 25 coffees each in that hour. Well often your franchisor urges you to reduce your labour.

SEE VIDEO BY TOPIC: Fixed Overhead Per Man Hour Calculation Explained

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Sales per labour hour: an important ‘Key Performance Indicator’

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It is an indicator of how busy or productive your staff are. It represents the number of sales each person on shift is responsible for making. Though what is important to know and understand is the benchmark for sales in your industry, that is, what are the optimum sales per labour hour for your business.

Therefore, each of those three staff members are responsible for making 25 coffees each in that hour. Well often your franchisor urges you to reduce your labour. Typically what everyone does then is either two things — they employ younger staff who cost less or they cut the numbers on shift. But do you know which one is the best for your shop? To do this I put myself in their shoes — can I make 25 coffees in an hour or 10 burgers in an hour? Do the sums and see what you think is reasonable for your store.

Remember though you have to factor in reasonable preparation, cleaning and opening and closing routines. But really understanding your sales per labour hour allows you to make that really important management decision. I have to say that I always found it better for the overall management of my store to have senior and junior staff. However, if I had a team of senior staff only, they had to obtain a higher sales per labour hour than if it were a team of all juniors or a combination of both.

Let me give you an example. A team of juniors only, seniors only or a mixture of both? Which is Okay so that means we need 2. Now this is where you make your decision do you have 2.

I mostly tried for the later version, one team leader who was responsible for the shift and the 1. As we know it starts slow and finishes slow but in the middle over lunchtime — WOW! So that is why with your 2. Remember, by the end of the day you are averaging 90 for the day. In the morning are you productive but not really busy? You know, just getting the checklists done. Then over lunch, POW, running everywhere. The store is humming, then it slows down at close time and its back to checking of those lists.

Is it too low? If so, cut the roster, save yourself some money and feel confident that this management decision is one you have made by understanding your figures and your store.

Equip yourself with the financial skills you need to run a successful business with our Business Management Essentials Online Course. Click Here to learn more. So how did I use it? So how many burgers can you make in an hour? Now, I challenge you. What is your Sales per Labour Hour? Having owned and operated three franchised food businesses; Boost, Healthy Habits and Bucking Bull; she knows what it takes to operate a profitable food franchise.

Measuring Retail Productivity: Sales per Labor Hour or Items per Labor Hour?

Many skills are required to build a successful business, including social skills, management structure, tax planning and financing. Ultimately, however, business is about money, and you can't make money if you don't sell anything. Sales productivity is a measure of the amount of money that you make from the efforts of each salesperson. High sales productivity means greater sales volume, lower payroll expenses and more effective time management. Calculating sales productivity can help you identify high performers who deserve rewards, and struggling performers who need additional training and support.

Sound like a pipe dream? For some restaurant managers it might be, but not for a progressive manager like you.

Man-hours, also called person-hours, are the unit of measure that is used in project management to measure the efforts needed to complete a task. Calculating man hours is the basis for being able to measure the cost per project of each type of expert and his contribution to the result. Start calculating the costs of all your resources by professional categories with ITM Platform. The total man hours per task is obtained by multiplying the number of people assigned to a task by the total time it takes to complete it. Estimating 6 working hours per day, the total man hours is obtained from multiplying the following:.

How to calculate the cost of your projects with man hours

Basically, you divide the total job price by the total man hours. Multiply hours by employees. If more than one employee is assigned to the project, multiply the number of employees by the answer listed in the previous step. This is the total number of man hours performed on this project. As an alternative you can just take overall cost of running the company, estimate how many billable hours you're going to do, and you pretty much have your bottom line cost of man hour. Then add mark-up which makes you feel comfortable and voila. Either way, you won't avoid talking to accountants. As a health and safety personnel you need to understand how to calculate man-hour since it is necessary for determining the health and Safety performance.

Sales Per Employee Calculator

Leave us a question or comment on Facebook. Com All Rights Reserved. Sales Per Employee Calculator This calculator requires the use of Javascript enabled and capable browsers. This script calculates the sales per employee for a given period of time, generally a month; however, it could be by quarters or years. This is an important trend reading calculator that is a must for businesses that survive; it can be the deciding factor as to when to hire new staff or lay staff off.

A major metric of company performance is sales per person.

Get the opportunity to grow your influence by giving your products or services prime exposure with Performance Magazine. If you are interested in advertising with Performance Magazine, leave your address below or contact us at: marketing smartkpis. Written by Cani Saputra on August 28,

3 Ways Predictive Staffing Can Help Your Restaurant Save Money

There are many of ways to measure productivity in a retail environment. Determining the best method is the dilemma many retailers face daily. Time is money.

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KPI of the Day – Sales: $ Sales per labor hour

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Figure illustrates a system whereby man-hours are classified into wage departments. Budget At the bottom is the calculation of the sales per andysearles.com J. A. Jones - - ‎Business & Economics.

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Comments: 4
  1. Kazragore

    I am afraid, that I do not know.

  2. Taujind

    Excellent idea and it is duly

  3. Yorisar

    It is nonsense!

  4. Najinn

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