Gross Profit
Name 1 of the 5 best practices to maintain a positive Gross Profit trend.
What is:
1.Maintain a good revenue mix with a more profitable patrol model
2.Service reviews and Annual increases
3.Maintain officer efficiency and OT
4.Not over staffing locations or overhead staff
5.Keep bill rates and pay rates in alignment with proper margins
Providing clients with reports, check-ins, and transparency about the value of services helps meet this goal tied to labor efficiency.
What is client satisfaction?
Name 1 of the 5 best practices to help meet the DSO KPI target of 35 days
What is?
1.Maintain a good relationship with clients and be proactive in resolving issues.
2.Negotiate favorable billing terms in sales process. Pre-bill, semi-monthly billing, Net 15
3.Pre-billing reminder calls,& client emails
4.Process billing timely and accurately
5.Correct billing errors timely
When working with customer payments, it is encouraged to use this form of payment for the quickest turnaround time.
What is ACH/EFT
The most important method to improve all KPI's is by
Building strong community relations with the Clients
Gross profit shows Franchise earnings before paying additional costs such as rent, utilities, fuel, and Vehicles etc. These expenses are known as...
What are operating expenses.
Labor is the biggest expense for a franchise, and poor efficiency can lead to problems with this.
What is cash flow?
Timely billing, correcting errors quickly, pre-billing reminders, and negotiating favorable terms help reduce this...
What is the Days Sales Outstanding Target%
The target % for the AR 90 KPI.
What is 3%?
This KPI is calculated by multiplying Patrol and Dedicated Revenue by their payroll targets (30% Patrol, 64% Dedicated) and comparing it to actual officer payroll.
What is Labor Efficiency KPI?
If a company sells a product for $100 and the cost to produce the product was $60, What is the gross profit amount?
What is $40
Labor efficiency KPI compares payroll this payroll target to this actual cost, in the business.
What is officer payroll?
To qualify for the DSO KPI, a franchise must average at least this amount in monthly revenue.
What is $10,000 per month?
Long delays in collecting accounts receivable can hurt this aspect of the business.
What is cash flow?
This KPI measures how quickly a franchise collects cash by dividing average month-end accounts receivable by 12-month revenue and multiplying by 365.
What is Days Sales Outstanding (DSO)?
This word describes how "healthy" a company's gross profit is compared to its sales.
What is Margin
Using rate increase tools, performing service reviews, following the CBX process, and providing transparency to clients does what for this KPI.
What are ways to keep labor efficiency profitable?
A lower DSO means cash comes in faster and is not tied up in receivables. This is called...
What is strong cash flow?
Accurate billing addresses and emails are example of doing this to reduce AR90.
What is maintaining accurate client information?
This KPI is calculated by multiplying Patrol and Dedicated revenue by their payroll targets (37% Patrol, 70% Dedicated) and comparing it to actual payroll.
What is the Gross Profit KPI?
Required officer payroll in each month of the rolling 12-month period, and also average 10k revenue per month is.
What are the qualification requirements for the Gross Profit KPI?
This is the single biggest expense to franchisee's business
What is Labor/Payroll
The average number of days in a month over the course of a year, which can be used to calculate annual DSO
What is 30.42?
Reviewing aging reports, visiting clients new and existing, and keeping documentation current are ways to improve this KPI.
What is AR over 90?
This KPI is calculated by Accounts receivable over 90 days divided by total accounts receivable This is.
What is AR over 90