0 Navigating the Seas of Profitability: A Guide to the Used Equipment Market

• Recent Articles
• by Administrator
• 12.13.2023

Navigating the Seas of Profitability: A Guide to the Used Equipment Market In the fast-paced world of equipment sales, success hinges on the latest models and cutting-edge technology and understanding the intricate dance of the used equipment market. As owners and sales managers of equipment dealerships, recognizing the dynamics of this market and encompassing pricing trends and customer preferences are paramount to ensuring sustained profitability. The Power of the Pre-Owned: The used equipment market is a force to be reckoned with, and its dynamics can sway the financial fortunes of a dealership. A savvy approach to managing used equipment inventory opens avenues for increased revenue and customer satisfaction. But what are the key considerations in this ever-evolving landscape? Taking trades or buying pre-owned units can be a choice or a requirement.  You have to make those decisions. Pricing Trends: One of the pillars of success in the used equipment market is a keen understanding of pricing trends. While it's tempting to base pricing solely on the initial cost of the equipment, a more nuanced approach is required. Factors such as equipment condition, maintenance history, and market demand all contribute to the pricing equation. Regularly assessing and adjusting pricing strategies ensures competitiveness and maximizes the potential for profitable sales. Whether you do local or national competitor price comparisons, setting prices and the limits of negotiation can strongly impact your margins. You can use your reconditioning work as a pricing strategy.  Think of three pricing levels: the first is as-is condition, the next is general repairs and a limited 30-day dealership warranty, and the third is a fully reconditioned unit with a 90-day dealership warranty.  Some companies will sell you a warranty plan, which you can include with the unit sale. Customer Preferences: Understanding the pulse of customer preferences is the compass that guides dealerships through the used equipment market. Are customers prioritizing reliability over the latest features? Are eco-friendly options gaining traction? Staying attuned to these preferences allows dealers to tailor their inventory to meet customer expectations, creating a more compelling value proposition. Effective Inventory Management: The heartbeat of a successful dealership lies in its ability to manage its used equipment inventory effectively. Implementing robust inventory management practices optimizes equipment turnover, minimizing holding costs and depreciation. Regular assessments of aging inventory, strategic promotions, and targeted marketing efforts can breathe new life into older equipment, turning them into valuable assets. You are unique, but your practices can be similar.  You need to have a solid turnover target and a significant point of decision.  How many days will you hold these units because they are already trapped cash? As a sales manager, you might target existing equipment for trade-in and warn your salespeople about units that are customer-owned that you do not want.  Consider the financed units that are on a five-year loan and in suitable environments as your creampuff choices and those that have been at the customer for seven to ten years and in a tough environment as the monsters you don’t want to touch. Strategic Marketing Initiatives: In the digital age, the power of marketing cannot be overstated. Craft a compelling narrative around your used equipment, highlighting its value, reliability, and cost-effectiveness. Leverage online platforms, social media, and targeted advertising to reach a wider audience. A well-executed marketing strategy not only attracts potential buyers but also enhances the overall image of the dealership. Conclusion: Sailing Smoothly in the Used Equipment Market: In the sea of equipment sales, the used equipment market is both a challenge and an opportunity. Owners and sales managers can confidently navigate these waters by embracing a proactive approach to pricing, understanding customer preferences, mastering inventory management, and leveraging strategic marketing initiatives. In doing so, profitability will thrive, and the dealership will solidify its reputation as a reliable and customer-centric player in the dynamic equipment landscape.  

0 Inspired Change

• Recent Articles
• by Administrator
• 07.03.2022

Are you just reacting to Change? The world has been shut down. Did you let that stop your business? Probably not! Great! But are you taking this time as a good indicator of some changes that you should be making? Are you reassessing your business and adjusting to come out of this profitable and growing? You can do it one department at a time. Make Progress This year might be different in adjusting to the crisis and what changes need to be done. I received a call from a company president in California today. He said he was doing his forecasting and figured he might be down 30-50% this coming 6-9 months. He felt, after making a million dollars net profit in the last 6 months, he better tighten up before that happened. He trimmed 30% of this employee count and 25% of his payroll to weather the storm. He was using a financial model that I had taught him, which is integrated between employee productivity and department financial structure. In the meantime, I have talked to other employers around the country that are doing the Payroll Protection Plan, but, while that keeps most of those employees (or at least the headcount) for a period of time, it doesn’t allow as much flexibility if you are not making money. There are decisions to be made in these cases, and there’s not one answer that is correct in all situations. Everyone is trying to adapt. What I find interesting is how many companies have shifted gears quickly because of this, when they could have done it many years ago with little panic. Restaurants and grocery stores are delivering or bringing your order to your car. Many training functions have quickly gone “online,” and some companies have laid off workers because they needed to trim the staff to getthrough this time. Most of these changes could have been done 12-36 months ago, but people’s backswere not up against the wall. In the equipment distributor/dealership world, some of this comes back to having a flexible financial model. How much confidence do we have in why “the financial model” should be the guiding structure, and how committed we are to its structure? The purpose of the financial model’s Percentage Structure in each department is that it can work in a strong economy or a weak economy. The benchmarks are not built on volume but on a profit structure and the productivity expectations that support that departmental profit target. I expect you’ve seen the financial model. Maybe you’ve seen the format of it in the industry cost of doing business report. But have you really applied or implemented it into your company’s reporting, goal setting and financial review? What I just discussed on the previous page were some high-level concepts about your company. You need to take that down to very specific issues in each department. Parts Department Financial Model: You could or should expect 20% net profit. (Administrative expenses are another 10% of this revenue, usually reported in another department.) One change for consumer distribution I suggest is raising the Operating percentage to 6% to account for the volume of credit card charges in the consumer business (which were not included in the original design of the financial model that was crafted in the 1970s before those were in heavy use). The productivity target volume is $50,000 a month per parts employee. When volume is down, you need less people, and, when volume is up, you need more. Included in the 10% for personnel is 8% for wages and 2% for benefits. Therefore, $50,000 per month per employee means you can afford about $48,000 a year (on average) per person in the parts department. If you are running lower on productivity, then you are running higher on the personnel percentage. Obviously, you will not achieve the 17%-20% net profit if personnel expense is not controlled. What level have you been seeing in parts net profit? – This just illustrates some high-level issues. There are also more subtle elements, such as the sales mix between counter parts sales (customer direct), internal parts, service billed parts, rental parts usage and manufacturer warranty parts. Likewise, parts turnover should be factored into the expected COGS and inventory investment. No one ever said a distributorship was a simple organization; there are a lot of moving pieces, even in parts. Changes in Service Department Just as with the discussion of the parts department above, there are elements regarding service (both shop and field), rental and service contracts. I believe now is a time to be making some strong decisions about the structure of a distribution organization and how it is managed. Being direct and firm is being careful about the future and the future of those employees and their families that will be the backbone of your company into the future. In the last 6 months, I’ve even seen a couple employers doing “outboarding” (helping to place those people they would otherwise lay off into another job). Let me illustrate results that can be achieved. In Texas we started working with a large company in 2000, when they had about 16 locations and 600 technicians. They were squeaking out a 13% service department net profit. We began doing two-day service department seminars every six months with those location service managers, we created Performance Scoreboards for each one, we got them engaged and competitive with each other, and five years later they had grown to 1,000 technicians and were delivering 26% net profit to the department bottom line. Consistent training, goals and measurement can accomplish this sort of results. Your Planning is NOW! Dealing with your company, how are you going to change your goals, expectations, and monitor your results? Do you have clear goals for department volume, personnel expenses, employee productivity, inventory turnover, obsolescence, gross profit and customer satisfaction? Whether your focus is your parts department, service, sales or rental departments, we have worked in each one and can show you how to establish your measurements and triggers to keep your eye on what is happening daily or weekly. Are you getting paid labor hours posted every day? Are you getting your billing out every day, or does 75% of it wait until the last 3 days of the month? That doesn’t help in your cash flow, and payroll doesn’t care when invoices were sent? Contact George Keen at Wise Wolf Consulting to discuss how to make adjustments to your operation that will result in profits to the bottom line.

0 Dealership Development

• Recent Articles
• by Administrator
• 07.03.2022

Focus of Market Share, Aftermarket Success, and Financial Stability, of course, Market Share is one side of measuring your sales activity. Whether you call them distributors or dealers, they purchase your product and sell it to the end-users. They are the marketing arm of your organization, and just like any sales organization, they need management. In simple terms, you have three groups of distributors: the top performers, the middle or average, andfinally, the low performers. Your top performers need help and assistance, but they probably drive you for support. They still take time and can be demanding, but they deliver. They are almost always worth the effort. You are driving your low performers, but sometimes they still don’t deliver. It behooves you to analyze their problems. Are they: A weak sales organization? Do they know how to prospect, quote, and close?Can you retrain them? Are they not willing to be price competitive in their market? Are they not focused on selling your product? Do they have too many brands to give you’re the attention your need from them? Are they not technically capable of presenting and closing on the features of your product? We can work with distributors and analyze these issues and work with you on how you resolve these obstacles. Aftermarket Sustains the Distributor - Absorption While you want your distributor to sell your equipment, it is certainly in your interest that they continue high-quality service and a significant parts volume. There are several reasons, but let’s mention one that benefits you. When the distributor is capable of maintaining 100% absorption or better, they are less likely to fight the competitive pricing in their market. That means your product will sell possibly at tighter margins in their market, but because it is competitive, it will sell. What is absorption? Why do we say it’s important to you? Absorption is a calculation at the distributor level adding the parts gross profit to service (and rental) gross profit and dividing that number (total aftermarket gross profit) by the total expenses of their company. What it tells you is can this company survive when the equipment sales are high or low. That means they can afford to operate without depending on the gross profit of their equipment sales to cover major operating expenses. Therefore, a distributor who sells a significant balance of service, parts (and rental) is strong enough to operate without holding out for hefty profit in prime equipment sales. They can afford to be competitive when they need and can sell with tight margins when they need to get the deal. Financial Strength is Measurable and Important Great products, market share, and energetic sales staff are great. Still, if the distributor can’t put net profit on the bottom line to finance debt, pay shareholders/owners, and finance the growth of the company, the distributor will not survive. There is no straight forward metric for all distributors. Because the sales mix can be different base on their market, sales staff, available technicians, and many other things, the benchmarks for a well-performing distributor vary based on their sales mix and type of industry. You should know what those benchmarks are for your distributors within your industry.

1 Accounts Receivable

• Recent Articles
• by Administrator
• 07.03.2022

The Options and the Choices This subject could easily be a full book, if not a series of books. But I’m not going to tackle it in that much depth. The first point is, if the customer is not paying by cash, check, or credit card, and you are not facilitating financing for them with a financial institution then you are carrying the credit choice for them! How do you manage that?A longtime customer owes you $42,000 and it’s been on your books for 76 days. What are you going to do about it? As we face a difficult economy and a restart what are you going to do about handling credit? Credit Cards of Factoring? You can tell customers that you don’t carry accounts and they can use their credit cards. But that means you pay a fee to the credit card company (unless you can pass that fee on to them). Or you can accept to create an accounts receivable and then sell that note to a company (factoring). In both transactions you are paying to get rid of the responsibility of collecting money. So, if there is a cost to hand this debt off to someone else, or you choose to handle it yourself? Then you need to manage it and have standards of how you will control it. You Chose to Carry the Credit So You Have A/R! If you offer financing through an outside organization, your bank, a financing company, or possibly through your manufacturer, they have standards; why wouldn’t you? If the banks and credit cards are going to charge them interest fees, then why would you not charge them late fees? How often are you writing those off and absorbing the cost of extending credit to customers? That is not a “cost of being in business” that you must absorb. You’re probably paying interest to your bank already! Establish Credit Standards and Hold to Them Establish a relationship with a good credit agency and work with them to determine, if the customer isn’t paying cash, and you can’t hand this off to a finance company what are your conditions under which you will extend them credit and when will you not? Set Limits How much money can you afford to extend to your customers? How much interest will it cost you? How fast can you collect and get that money back to your bank to pay your expenses and payroll? Big questions that sometimes get overlooked. In some industries, they measure the speed of turn on the money (Days of Sales Outstanding – DSO). That could be one way to look at it, or you could set a standard based on your revenue and choose that you can afford an eighth of your sales open in accounts receivable. The point is to look into your industry, your financial strength, and your way of doing business and set a limit. If you went to a bank for a loan, they would tell you how much they would go to and no more. When you extend credit to your customers as accounts receivable you are just giving them each a loan. What is your total limit of loaning money to your group of customers? Identify the Problem There are a variety of ways of setting targets of what is reasonable and controllable. Most companies look at aging their accounts receivable. In other words, how much money is over 30 days old, then how much is over 60 days old, etc? In the past, I have worked with companies on setting targets for these aging categories. One set of targets we used was:There is no magic in these targets, but the first point is to have some. Then determine if they work for your company and finally hold to them once you set them. By Department! But setting targets for how much money gets to be how old is only a start! There are a variety of aspects to your business. How do these targets look when you just look at customer open credit in one department or another for example? If you have four departments; sales, service, parts and rental, how is the aging percentage in each department? In the past, I have seen parts department A/R aging to be pretty good, but service is really a collection problem. The sales department might have the largest volume, but also they are the product where you get the most outside financing, so they might not be a collection issue for you. Can you organize your reporting of your accounts receivable into these groups? It might give you some insight into where your real collection problems are. High to low! Don’t stop with just aging your receivables! Besides grouping your receivable by departments, what about looking at them from the largest amount of open money to the smallest. Many times, I have worked with companies where the A/R report was organized by customer account number or just alphabetically. Those don’t help you focus on where the real money is. Sort your A/R report from the largest open amount to the smallest. Call these people/companies at the beginning of this list. They will have the quickest impact on your cash account. By Customer Size! This might be a little more complex, but you’ll be surprised at the results. A few years ago, I helped a client rank their customer into groups. The first group was those customers who did 40% of their business, then we grouped the customers who did 30% of the business, next were those that did 20% and last was the group who did 10%. Only a few customers were in the first category. A larger group was in the 30% category, etc. When we then aged the receivables for these accounts grouped on how much business they did with the client we were amazed. The group that did 40% of the business was not a collection problem. It seemed they were large enough that they just paid their bills and kept going. If you followed good invoicing procedures, their bureaucracy was efficient enough to get them paid. The real problem turned out to be the two groups in the middle. They represent about 50% of the revenue for this client. Sometimes they are not that large, and they are using you as their cash float! It might help to organize your A/R report this way and know which types of accounts arecausing the problems. Follow Up, Follow Up & Follow Up Follow up before it’s a problem. There are a few simple suggestions that seem to make collection less of a hassle. When you are doing custom work, service work renting equipment, etc. Get a signed agreement or quotation (not estimate). When you have a signature UP FRONT, the customer knows how much it will cost, what you are charging, and you have a signed agreement that they accepted that price. Next call within the next 7-14 days and confirm they received the invoice. I don’t care if you personally handed the invoice to them, call the accounts payable department and make sure they got it, and that it’s been posted into their system for payment. If there was any snafu in getting the invoice to them or into their system, then catch it early. This is much better than waiting 60 days before you start calling them. Be sure that you have three people listed in your information about who approved the purchase, who their boss is, and who actually handles creating or signing checks for them. With that information, you have enough contacts to handle any delay on “I can’t do that until so and so approves it.” Use a Collection Service Letting an open account drag past 90 days or your terms is just not good business. And the longer that invoice is on your books, the older and less collectible it actually is. Have a collection company relationship, and when your people have reached that point, then send the collection problem over to professionals and write it off! That might sound like you’re losing money, but the truth is, you already lost it!

2 Rental Goal Setting

• Recent Articles
• by Administrator
• 07.02.2022

Whether you agree with the NFL Salary Cap or not, the point is they have a target for each team that can’t be exceeded.  How do you set targets or goals in your company?  In the rental department many goals are established based on the investment value, sometimes called the acquisition cost. 6% of your rental investment each month is a starting point.  Will you achieve that all the time?  NO!  But suppose you can set most of your monthly rental rates at that level.  In that case, the discounting, utilization, and other diminishing factors might not bring your actual collected revenue down too low.  Over the last year, we have been helping dealers track and identify what is eating away at their rental return.  Sometimes it’s just really poor utilization.  Dealers can sell off those investments and cover both the investment pay off and eliminate the trapped cash sitting there.  Other times, the problem is low rental rates where they feel they will lose a stable customer if they raise rates during an existing rental contract.  In tracking individual units and groups of units this past year, we have been able to identify which units or which group of units have been having troubles.  Surprisingly, to some managers, other groups of units have been out-performing the expectations.  So if we work on those with problems, they bring the total results down less significantly. Are your rental rates set based on value, local competition, or customer chatter? Do you track financial return by unit and by groups? When is the last time you raised your rental rates? Will the economy increase rental demand?  Are you ready to add units or liquidate some unproductive units? Creating Goals & a Plan Getting your hands around the problems in the rental department is relatively simple.  Three points to keep in mind are: have a plan with goals, organize your procedures to accomplish those goals, and then monitor results against your goals and take corrective action. In the Rental Department, there are several goals and ways to measure success.  For years, you’ve heard about “Days Utilization” and “Dollar Utilization.”  Both are useful and give you insight into some issues.  But if the baseline for “Dollar Utilization” is your posted rental rates, and those rental rates are set too low or haven’t been raised in 12 years, you are probably getting a misleading answer.  If the “Days Utilization” looks high, but there is no money related to the units being “out on rent,” what value is that to you? A third factor or measurement could be (or should be) the monthly revenue accomplished as a result of investing that much money in the rental fleet.  Simply put, if you have a million dollars in your rental fleet, are you getting $50,000 – $60,000 each month in revenue? With a goal of 75% “Days Utilization” and a 5-6% Monthly Revenue target, you have some solid goals for your rental department. Process & Procedures It would be best if you had consistent and timely billing for your rental contracts.  It would help if you also had a remarkable turnaround.  Renting a car at the airport should give you an insight into “turnaround.”  The typical process includes the following steps: out on rental; returned to the company; inspection, refueling, washing; maintenance/repair; and available for rent – THE SAME DAY! How long does it take your operation to turn a returned unit? What is your cost per unit for the turnaround? What is the frequency of service calls on units rented in the first seven days they are out on rent? Answering these questions could seriously improve your gross profit.Do you have a regular report (which you look at) that shows you which group of units have a low return, low utilization, and are your low performers?  How many units have you liquidated because of what you found in that report?  How many new units have you added to your fleet because the category has fantastic return and utilization? Monitor & Review Performance Here is the header information from a rental report we designed for a dealer: Have you discovered what reports you have available, and do they provide all the information you need? To the turnaround discussion earlier, do you have a report showing your turnaround costs?  Based on your location, facilities, and process, do you have to check a unit in and then also check that same unit out?  Why are you doing two steps on the same unit? When the unit comes back, do you check the fuel level?  And is the customer billed for the fuel they used?  Do you inspect for customer abuse, and do you consistently bill the customer for abuse, or does your rental profit and loss statement show unusually high maintenance, because you were afraid to bill the customer?These are merely a couple of illustrations of monitoring your processes and procedures to generate more expenses recovery for your dealership. Your Rental Department is capable of generating excellent profits for your dealership. Have you established reasonable, solid goals for what the investment should accomplish for you?  Have you educated your staff on what you expect of them to achieve these targets?  Are you monitoring your results to assure that you extract all the return from your investment? It would be best if you had a depth and breadth of the fleet to be successful. If a customer calls for equipment and you don’t have it, they’ll turn to the competition. Eventually, they may call the competitor first. To achieve the right mix, you need to analyze how your fleet performs and research the jobs and functions customers are doing and the equipment they need to complete those jobs. You also need machines that have versatility, meaning they can be outfitted with a variety of attachments — and you need to carry those attachments as well. Rental needs to be part of a dealership’s strategic vision to be sustainable. Rental is frequently considered a supporting function to equipment sales and not a process to develop a new market or improve a dealership’s gross profit margin. This approach means it’s not part of any long-term planning regarding facilities, staffing, or other investments.Ultimately, rental equipment is just viewed as additional used equipment inventory. By recognizing rental as a critical profit-producing department, you’ll start giving it the focus it demands and generating additional profits. The work we have done with clients over the last 35 years shows us that this is achievable and should be within your expectations.  If you believe you’re not getting your best results contact Wise Wolf Consulting, we would be glad to discuss what together we can do to improve your profits from the rental business.

0 Setting Your Goals

• Recent Articles
• by Administrator
• 07.02.2022

NASA has a poster hanging with bees that reads: “Aerodynamically, a bee’s body is not made to fly; the good thing is that the bee doesn’t know. “The law of physics says that a bee cannot fly, the aerodynamic principle says that the breadth of its wings is too small to keep its huge body in flight, but a bee doesn’t know; it doesn’t know anything about physics or its logic and flies anyway.This is what we can all do, fly and prevail in every moment in the face of any difficulty and in any circumstance despite what they say.Let us be bees; no matter the size of our wings, we take flight and enjoy the pollen of life.” FROM SOUL ALCHEMY ON FACEBOOK I find that section from Soul Alchemy very encouraging. How would we be seeing things at night if Thomas Edison quit after six tries to make a light bulb?So what is your plan for your department or your dealership?We have experienced the worst pandemic in history. We hope that we are on the downside of it. In our consulting practice, we frequently quote Doctor Steven Covey’s Seven Habits of Highly Successful People – Begin with the End in Mind.When a reporter asked, “How did it feel to fail 1,000 times?”Edison replied, “I didn’t fail 1,000 times. The light bulb was an invention with 1,000 steps.”“Great success is built on failure, frustration, even catastrophy.”So, where do you go to get guidance for your goals? Some people ask their lawyers, accountants, doctors, or next-door neighbor. Some people consult their business associations, or they ask the contact people from their manufacturer.Establishing Revenue TargetsRecently I was talking with a dealer principal about his sales coverage. He told me that his manufacturer didn’t measure market share, and he wouldn’t know how to calculate that. I said, let’s try an exercise. There are 328.2 million people in the USA (as of 2019). His manufacturer is a publicly-traded company so we went and got their annual stock exchange report to find out their yearly sales. I told him to divide the total dollar sales by the number of people in the country. Obviously, that is not difficult to do. We then looked at the territory coverage that his company was responsible for and estimated how many people were in that territory. We now had two numbers the total headcount in his region and the price per person from his manufacturer for the country. Multiplying the number of people in his territory times the dollars per person in the USA, we have a target purchase volume for him if his company is doing the “average” volume for his product in the country. Next, we compare his purchased volume from his manufacturer with the calculated target. He was about average. So, according to his manufacturer, he was doing an adequate job selling their product in his territory. He should be happy, right? Well, who wants to go to the annual meeting and stand up in the middle of all of your peers and shout, “I’m Average!”?? Generally, we want to be leaders, the top performers, or at least in the top section of performers. Setting Annual Growth Rates Growth rates change by type of industry, capitalization, and staffing requirements. If you are a software company, 20% growth per year will lead to death, but if you were a health care company, that 20% would be outstanding. As an industrial equipment dealer or distributor, 15% annual growth will lead to doubling your sales volume in 5 years. Why should you be reaching for a target like this? Inflation in the USA range from 1.26% to 3.84% (2016 to 2008) Cost of Cash or Investments (Investopedia claims that inventory carrying costs can run between 20%-30%) You also should include your insurance costs, your personal property tax rate, and the opportunity costs for using this money better. Price Increases – The cost of steel, the import fees, and general labor problems all impact the increases that your manufacturers pass on to you in increased prices. If Inflation was 2%, the Cost of Cash (investment cost) was 10%, and the Manufacturer’s Price increase was 3% you are already at 15%. We have not included your labor cost increases, rent, or other expenses in this simple calculation. Whether you see all of these factors at these levels right now, it gives you an idea of what you should be bringing into your evaluation and goal-setting elements. Using Football’s Salary Cap Approach “A salary cap is essentially an agreement between the league and players that places a limit on the amount of money a team can spend on salaries for players. The NFL uses a hard cap, meaning that no team is allowed to exceed the cap limit for any reason.” From the Bleacher Report, Turner Broadcasting So do you have a salary cap? A salary cap would indicate that you know what you can afford to spend, and you have controls in place not to exceed that number. Wow, that would mean you’re managing your expenses! Working for the last 35 years with dealers and distributors of industrial and commercial equipment, I have seen a couple of approaches to setting the salary cap. One of the simplest is 1/3 of the gross profit amount. So if you are making 60% gross profit – you can afford 20% of revenue for personnel. Remember this includes all overhead staff, salaries, hourly wages, bonuses, taxes, benefits, and administrative costs. If you’re making 35% gross profit, you can afford about 10-12% personnel expenses. Simple, right? Other industry personnel benchmarks have been 50-60% of the sales department’s gross profit, 10% of the revenue in parts or rental departments, 20% of the revenue in the service department, and 5% of the aftermarket revenue for administrative expenses. Surprisingly, you’ll find these departmental targets are not that far from the 1/3rd of gross profit dollars. We’ve discussed your company revenue goals, your personnel expense caps, and your possible market share. We didn’t discuss every benchmark or target in your business. But we wanted to start you thinking, planning, and taking control to succeed better. Working with you to achieve productivity, profits and performance is our goal as a consulting firm. Your success is what we are here to develop.