• Nov
  • 24
  • 2014

Balancing profits and labor costs

photodune-5042692-profit-xsIn most businesses, the most expensive cost of operation is labor.A business can greatly increase its profits by simply finding ways to trim its labor  costs by a small percentage. For most companies, labor costs are a set  amount, and a set percentage of the forecast sales for the day. However, the art of forecasting sales takes time and practice – it is not a skill learned overnight.

Over-scheduling results in an increase in labor costs, and requires trimming hours and/or shifts later in the week. Under-scheduling can lower labor costs, but it can lead to lower sales and less customer  satisfaction due to short-staffing. For these reasons, the business could still finish under that day’s forecast sales. With the right training, and  computer software to assist along the way, you will reach that happy medium  that maximizes profits for your business.

If you are struggling with rising labor costs and lower profits, our Midnight software is the answer to all of your problems! Learn more today: https://www.virtualsystems.com/midnight-fulfillment/