Too high wage costs? … Start estimating future revenues!
Tuesday, June 28, 2016
It can be downright poisonous for your shop’s economy, if you as a store manager do not align the number of employees scheduled for work with your local knowledge about future revenue. This can be based on changed customer buying patterns following upcoming events or altered weather conditions – the latter being especially relevant for weather volatile businesses such as e.g. ice cream shops and cafés.
By experience we know that wage costs in e.g. most cafes and ice cream shops represents 25-30% of total sales and is therefore, by far, the greatest expense. For this reason, Tamigo gives an invaluable overview of wage costs. You can always see how much your roster costs today, tomorrow and in a month.
In addition, Tamigo shows you exactly how your roster should look like to achieve balance between planned wage costs and estimated revenue.
Local knowledge is key
There is nothing wrong with high wage costs as long as sales figures go up too. In Tamigo the planner can provide her/his own locally based idea of realistic sales figures for the future. We call this ‘estimated revenue’.
Using estimated revenue based on local knowledge about customer buying patterns, events and weather trumps any budgeted revenue. Tamigo visually shows planners exactly how much to reduce staff until you achieve the desired balance between wage costs and sales (the wage percentage).
Conversely, planners/shop managers can also turn up estimated sales, which automatically makes room for more employees and thus higher wage costs in the shift schedule.
Discover what Tamigo can do for your café or ice cream shop here: Cafés & ice cream shops