In an earlier feature we said that the purchase price of ingredients was low down on the priority of listing of things to do in order to create a successful business. We realise that this opinion may be contentious but is something we believe in from our experience with other customers. These customers were very organised and believed that they ran a professional multi million pound organisation.
Despite this and without changing any of their purchasing arrangements we jointly achieved an improvement of gross profit of 4 percent.
What would this mean for your company? If your annual sales were £100,000 per annum this would mean £4,000 extra profit per annum. If your sales were £200,000 this would represent £8,000 extra profit per annum. Not a trivial amount.
Most organisations think of their sales revenues but do not consider their cost e.g. purchases and salaries.
In KitMan we combine both sales and purchase analysis.
We analyse sales activities and then monitor purchases so that results can be compared against any forecast and comparisons with previous years.
These comparisons will produce results of the current gross profit levels daily and provide an automatic comparisons against the current forecasts. This highlights any deficiencies so that corrective action can be taken immediately advising menu changes etc.  At all stages the customer is in control of what changes to make, if any.
For more information on the KitMan Financial Modules