After looking over my first monthly statement I found that my revenue was not doing nearly as well as I thought I had been. Although my gross statistics that show up in comparative results (cups sold, total sales, customer satisfaction) they do not factor in just how much I have paid in to get those results. Basically I have bought my great comparative results as I have taken the most expensive route (high wages, new furniture/espresso-maker, organic coffee, many ads) yet am charging a below-average cost for a cup of coffee (just $3.25). So the comparative results mask an overall problem at Chandler's.
For this week I decided to begin cost-cutting, not wanting to make drastic or immediate changes that may drive customers away. I simply cut ad space and radio spots this week, as I do not want to raise prices or reduce wages. In the future weeks I may begin to eliminate some servers or slowly reduce wages until I get the shop going back in the right direction. I am optimistic since Chandler's has gained such a large customer base and has done so well in terms of gross sales that if I make gradual changes then revenue will surely follow.
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