Know your sales least common denominator

Walgreens over the last few decades has become the most prominant drug store in the United States. When I was growing up, Rite-Aid and Eckerd pharmacies where the top two “corner pharmacy” giants. Jim Collins, in “Good to Great,” details how Walgreens went from a struggling family-run corporation to a national brand.

 

Know your sales least common denominatorOne of the key components that Walgreens focused on for their growth was their per-customer sales. This is a simple number that averages a store’s receipts per customer. Everything including the location, store layout, sales, and product positioning is sculpted towards increasing their sales-per-customer numbers.

 

It is critically important to know your “least common denominator.” For a primary care medical practice you would use charges and collections per visit whereas a surgical practice would use charges and collections per surgery because of what insurance calls global fees that cover all follow-up visits. Every business should know it’s least common denominator to drive business.

 

When you look at your ratios from your your P&L and Cash Flow statements, you take a 30,000 ft view. By looking at your least common denominator you can begin realizing sales and cost-savings that you are missing on a macro level.

 

Next Week!

Social Marketing That Works

Enough Wasting Time

with

Tracey Warren,

Author of

Six-Word Lessons for Successful Social Media:

100 Lessons to Grow Your Business Using Social Media

 

June 11, 2013, 7:30 – 9:30 am

Morgan Stanley Conference Center

2011 Myhre Rd, 3rd Floor

 

RSVP here:

SocialMediaThatWorks.eventbrite.com