Avoid Falling Into SALY

August 9, 2016 6:52 am Published by Leave your thoughts

Increasing profits, regardless of your industry, isn’t about wishful thinking or a leap of faith.  Instead, it comes down to effective implementation of strategies.  Knowing your department profit margins, key performance indicators,  labor and resource utilization are needed.  If you want to increase profits, you will need to understand these factors

Fine-tuning your business model can also help transform your business.  Far too often, organizations, especially those with the same staff year after year, fall into the SALY trap.  The SALY trap?  SALY stands for “Same as Last Year.”

How do you combat the lethargic and stagnation that comes along with SALY?  The solution is to make sure that staff has better control of the facts.  A good example of this would be knowing which slot machines or menu items should be replaced or what promotional marketing campaigns are simply no longer working.

By knowing sales conversion rates, it is possible to see an increase in profits.  For example, spending $10,000 to promote Valentine’s Day specials only to net $3,000 is clearly a losing proposition, yet the same promotion is done the same way year after year with the same results.

Addressing these and other key issues can decrease operating costs and, in the process, boost profits. The more facts you have available, can yield restaurant solutions, gaming solutions and hospitality solutions to rejuvenate your bottom line.

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This post was written by Gary Stahl