Labor Efficiency
WHY IT'S IMPORTANT
- Labor is the single biggest expense to franchisee's business
- Poor labor efficiency will cause cash flow problems for your business
- Indicator of managing labor force effectively for business sustainability
HOW IT'S CALCULATED
- Total mix of revenue x payroll benchmark (37% Patrol/67% Dedicated) vs Actual Labor Cost
BEST PRACTICES
- Utilize Rate Increase tools from the Hub
- Perform annual services review and rate increase
- Follow CBX Process
- Ensure client needs are met and revisit needs frequently
- Provide transparency to clients on value of services through reporting and check-ins
Gross Profit
WHY IT'S IMPORTANT
- Gauges the financial health of your franchise
- Leading indicator of Customer Retention
- Provides insight into the management processes in place for patrol contracts
HOW IT'S CALCULATED
- Total officer and overhead payroll divided by total revenue (excludes owner payroll)
BEST PRACTICES
- Maintain a good revenue mix with more profitable patrol model
- Service Reviews and Annual increases
- Maintain officer efficiency and manage OT
- Not over staffing locations or overhead staff
- Keep bill rates and pay rates in alignment with proper margins
Customer Retention
WHY IT'S IMPORTANT
- Great indicator of the quality of service being provided
- More efficient and cost effective to keep existing customer than to replace
- Existing customers are the #1 source to get new business via referrals
HOW IT'S CALCULATED
- Avg # ongoing contracts serviced over the rolling 12 months period (25%) and the retention of those same contracts (75%)
BEST PRACTICES
- Maintain client relationships through visits and communication with the clients
- Responding to client's (PM) complaints / issues timely with solutions promptly
- Ensure clients are getting reporting and analytics to validate services performed
- Ensure client needs are met and revisit needs frequently
- Own mistakes - learn, and improve to ensure clients receive quality service
