Customers & Lists

02/10/2023

QUICK POLL 🤷🏻‍♂️ (vote yes or no below)

If I released a private Facebook™ group (100% free to join) specifically for busy owners of restaurants, food trucks, pizzerias, and other food establishments who want to massively grow their sales, and started personally sharing with you:

✅ #1.) Weekly tips on getting more customers and having them return over and over again

✅ #2.) Weekly video lessons explaining exactly what you should and should not be doing for messaging customers

✅ #3.) Ways to collaborate, share resources, and also learn from other active members of the group who are also busy, have limited ad budgets, and frustrated in not getting actual methods that produce real sales growth
.. WOULD YOU BE INTERESTED IN JOINING? 🙏

Comment "YES" or "NO" below.

I've been working really hard behind the scenes preparing to mentor a much bigger audience this year and have A LOT of knowledge to share around attracting, retaining, and messaging customers using automated systems.

If that interests you, let me know in the comments below!

I wanna' gauge how many of you would like it! 😃

02/06/2023

01/19/2023

Have you ever struggled at the end of the month and worked all the way there only to look at your bank account and find there’s nothing there?

And there’s too little for you to take anything out and be like…

“I literally worked an entire month for nothing?”

An immediate thought is that you have to grow your business to make more.

But how…

… get more customers?

… cut my overhead costs?

… make my customers worth more?

… spend more on advertising?

… maybe even send out some Groupon® vouchers?

… Or pick up another event?

… Or work another day of the week?

Ughhh. Somethings gotta get done to make a change, you are sick and tired of this!

Which one is the easiest to do?

After all, you’re already busy enough and now you gotta do more to make more?

Which one will make the biggest impact? You know you can’t do them all.

So which one?

Hmmm…

Then a thought comes into your head. You think back to your high school days.

That business class you were forced to take for the credits to graduate.

Something about knowing your margins…

… How did it go???

Ah yes…

Gross margin and net margin.

But what the heck does that have to do with not having enough money left over at the end of the month?

And what the heck is the difference between gross and net margin???

And why does it matter that you know the difference?

Well first off, you’re not alone if you don’t adequately grasp the difference between gross and net margins…

… Most owners aren’t taught it and don’t discuss it, so it’s not wildly known.

… It’s also one of the most important criteria to know whether your business is healthy or not.

Gross margin is the direct cost of fulfilling your service.

Take your total revenue (or sales) minus your costs of goods sold (COGS).

Your COGS is the incremental cost of selling one more unit of your product, like a taco or hamburger.

The COGS would be directly related to servicing another customer. Your food and labor costs.

So the formula is Gross Margin = (Revenue - Labor Costs - Food Costs) / Revenue x 100.

For example, your sales for January are $20,000. Your payroll was $6,000, and you spent $7,000 on food.

GM = ($20,000 - $6,000 - $7,000) / $20,000 X 100. GM = 35%. Gross margin is expressed as a percentage.

Your gross profit would be $7,000. GP = Revenue - Payroll - Food Costs.

Net margin is your profit, what your business takes home after all expenses.

Most Food Trucks run a net margin of 3% to 15% of sales.

Most Pizzerias run a net margin of 15%.

Most Restaurants run a net margin of 3% to 10%.

The formula is NM = (Revenue - Labor costs - Food Costs - All overhead costs) / Revenue x 100.

To continue the example, you’ll use a monthly overhead cost of $5,000. Here are the results…

NM = ($20,000 - $6,000 - $7,000 - $5,000) / $20,000 x 100. NM = 10%.

Your net profit would be $2,000. NP = Revenue - Payroll - Food Costs - All Overhead Costs.

So why does all this math and knowing gross margin and net margin have to do with having more money at the end of the month?

It’s knowing which lever to pull that’s the easiest to increase your gross margin.

We all want to do the easiest thing to make more money, right?

If you were to increase your gross margin by 5%, from 35% to 40%, your gross margin would increase from $7,000 to $8,000.

Your Gross Margin went up by 14.3%. From 35% to 40%.

That 5% increase will be added to your net margin.

The result will be a net margin of 15%.

Now check this out…

… That increase of 5% in gross margin will cause your net margin to increase by 50%.

From 10% to 15%.

So to put it another way, that ‘small’ increase of 5% in gross margin resulted in a 50% increase in net margin.

Your business net profit went up $1,000, from $2,000 to $3,000.

Just imagine what you could do with an extra 50% of net profit!

All from increasing your gross margin by 5%.

Read that again.

A 5% change in gross margin increased your net margin by 50% in this example.

Not too shabby. Not shabby at all.

Simple. Exercise over, right?

Not so fast.

This goes back to one of the previous questions…

… “How can I increase my gross margin?”

There are six levers you can pull to increase your gross margin.

You can even combine them too.

So it begs the question…

… “What’s the easiest way to do it?”

… ”And so which lever do you pull first that has the most impact?”