Operating a sales company, the gross margin percentage is often given by the reseller discount you are getting from your suppliers. If you want to increase profitability you could provide “value added services” with your products, for example maintenance contracts, on-site installations etc. In this presentation we will introduce the key ratios “value add percentage” VAP and “profitability value add” PRVA.
A dashboard is the panel of instruments and controls facing the driver of a vehicle. Driving a companies business, a dashboard should give you a condensed summary, which allows you to recognize critical areas and take actions to keep the business moving in the right direction – provided you know your destination.
Any dashboard without a clearly defined strategy for the organization will be useless. Only if you know the destination, you can derive the right set of key performance indicators and arrange them in such a way that they give you the current position of the organization, highlight deviations and allow you to make necessary corrections.
When you plan to setup your own business, many questions will come up.
- How to do the planning?
- How much can I charge to the customer?
- How many orders do I need?
- What are the risks involved?
In this presentation we will answer these questions using the key ratios we have introduced before. With a simple flow diagram the planning process is explained step by step.
The operating expenses of a company have a high impact, not only on the company’s result, but also on other parameters, like profit per costs and minimum order income to be achieved. Even the same operating result and profitability of two companies could be of a different quality, because of different relations in fixed and variable expenses. In this presentation two performance indicators will be developed to monitor these important differences.