Once upon a time people stood in long lines, patiently waiting, to buy a phone from the only wireless store in the whole town.
Now it seems wireless stores are every where and customer patience is a thing of the past!
In this hyper-competitive and fast-paced market place, you’ve got to be staffed properly to take advantage of every possible sale opportunity.
Often times, store owners look at the out of pocket cost (as they should) of hiring additional staff without consideration to lost sale due to improper staffing.
Let’s do some math and see why proper staffing makes sense:
How many hours are you open every day? How many are peak hours? How many days a week are you open?
Let’s say you are open 10 hours a day with 4 hours of peak time, 6 days a week.
So, that’s a total of 60 hours open and 24 peak hours in a week.
Now, let’s estimate how many customers walk in and out of your store without buying anything everyday during peak time
(1 customer per hour= 4 customers per day x 6 days): 24 customers lost in a week x 52 weeks in a year = 1,248 customers lost in a year.
What’s an average spend amount per customer in your store? (CellSmart POS Nightly Batch email has this information.)
In our stores, customers spend an average of $43.27.
So let’s take 24 weekly lost customers or 1,248 yearly lost customers and multiply by $43.27 of average spend per customer
= $1,038.48 in lost potential revenue per week or $54,000 in lost potential revenue per year.
Now, let’s imagine we had hired an additional staff member during the 24 peak hours every week.
24 peak hours in a week x $10/hour = $240 weekly wages or $12,480 yearly wages for a part time staff during peak hours.
If we subtract the wages for an additional staff member from the potential revenue, we would still have a significant amount net revenue.
$$1,038.48 – $240 wages = $798.10 in lost weekly revenue
or $54,000 – $12,480 = $41,520 in lost yearly revenue
As you can see, not having proper staffing severely affects your bottom line. A well-staffed location is more welcoming to the customers as they walk in and realize that they won’t have to wait to be serve on.
Action plan: Find out what are your peak hours in your business (CellSmart POS Version 3 has this information on the Dashboard) and make sure you have adequate staff during those times.
Don’t just sell, CellSmart!