LA Fitness How can we increase EFTs Whats the problem LA Fitness is a company that strives to provide the most comfortable working and exercise environment for those who enter its doors As a business we must also strive for productivity and profitability ID: 240012
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Slide1
Internal Proposal
LA Fitness: How can we increase EFTs?Slide2
What’s the problem?
LA Fitness is a company that strives to provide the most comfortable working and exercise environment for those who enter its doors.
As a business, we must also strive for productivity and profitability.
As of 2013, EFTs have dropped from 5 million to 3.1 million.We need to do better
Our MOTIVATION level tank needs to be FILLED UP.Slide3
How do we solve this problem?
With each EFT cleared up, LA Fitness earns on average of $35
Average salary of front desk/EFT staff member= $8.00/
hrAverage front desk/EFT shift= 4 hrsOne EFT clear up covers 95% of a staff members daily shift salary
EFT staff member, on average, can produce 15 EFT clear ups in 4 hour shiftLA Fitness needs to hire more EFT staff membersEFT clear ups are easy money, but the staff to produce them aren’t availiable
Proposal includes each facility to increase EFT staff by 4 individuals and increase shift to 6 hours, from the regular 4 hours.Slide4
Cost analysis
$8.00/hour staff salary
Each clear up yields $35 profit
Current: $8.00/hr x 4 hours = $3215 EFTs x $35 = $525
$525-$32 ( salary ) = $493 profit on each shift
Currently, we are making pocket change!!!!Slide5
Cost analysis
Proposal:
$8.00/
hr x 6 hours = $4830 EFTs x $35 = $1,050$1,050-$48 = $1,002
Over 50% profit increase by adding 2 extra hours.
We need to be making REGISTERS full of PROFIT!Slide6
How do we do this?
May:
Each Operations Manager hires 2 extra staff members
Begin training them for EFTDetermine most productive hours by doing time studySlide7
June
Begin staffing for EFT
Document and track EFT ratios and productivity per hour
If staff aren’t producing, hire new staff or rotate staff to increase productivityReport back to District Managers with results and opinions on long term plausibility of proposal.Slide8
In conclusion
We need to produce productivity and productivity
Each staff need to be retrained and new staff brought on
More hours per shift will increase profitability and increase employee morale as commission is involved (included in profit analysis)
LET’S ROLL THE DICE AND SEE IF A SIMPLE CHANGE CAN CHANGE THIS COMPANY FOR THE BETTER!Slide9
Transmittal letter
On behalf of LA Fitness, I am delighted to present this proposal regarding how EFTs and productivity can be decreased. From a previous round-table discussion, the points discussed are included in this proposal.
Increasing Profitability
Increasing HoursNew staff
Analysis of proposal after one monthOperations Manager opinions
As a company devoted to bettering the lives of individuals who want to better their health and lifestyles. But as a business, in order to remain helpful in many lives, we must make a profit so we can increasingly better our company for everyone.Slide10
Thank you
THANK YOU TO EVERYONE FOR YOUR TIME!!!!
LET’S MAKE THIS A GREAT YEAR!