Typically, our Industry splits its product up into departments. Something like this – bread, cakes, slices, hot pastries & drinks etc…
Knowing your strengths and weaknesses in your product range will help you to further increase your profit and reduce your losses.
What’s your number 1 performing department?
What’s your worst performing department?
Why you should know this….
To give you an example we’ll talk about bread sales in our own business. Over many years these were on a steady decline going from 7% to 1% of our total revenue. This started happening when we closed our small corner bakery store and opened our flagship 150 seat bakery café. We found that with the move to a bakery café we were no longer selling a dozen rolls for $6. We were now selling a meat & salad roll at $7.50. Customers now saw us as a place to meet others for lunch, or coffee.
We were employing 2 qualified bakers at around $40k each per year and basically producing bread for our own consumption in a higher profit margin product.
So we did the “unthinkable”! We switched to buying our bread in – GASP, a bakery that buy’s it’s bread in!! Yep and we saved BIGTIME!
We reduced our staff by 2 at $80K, dropped thousands off our ingredient purchases and power. Bread was now costing us around $39k per year to buy in. That’s a financial gain of $41K to us! #WINNING.
When your sales are poor in one area take a look and think laterally. Be open minded to change and DON’T be afraid to push the boundaries when it comes to making change and running more efficiently.
Cheers
Michael & Melissa Hudak
Baking Industry Business Coaches
PS: Follow us at https://www.facebook.com/provenprocess
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