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Presentation on theme: "Internal Proposal"— Presentation transcript:
LA Fitness: How can we increase EFTs?
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.
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/
Average front desk/EFT shift= 4
One 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 shift
LA Fitness needs to hire more EFT staff members
EFT 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.
$8.00/hour staff salaryEach clear up yields $35 profitCurrent: $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!!!!
Proposal:$8.00/hr x 6 hours = $4830 EFTs x $35 = $1,050$1,050-$48 = $1,002Over 50% profit increase by adding 2 extra hours.
We need to be making REGISTERS full of PROFIT!
How do we do this?
Each Operations Manager hires 2 extra staff members
Begin training them for EFT
Determine most productive hours by doing time study
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 productivity
Report back to District Managers with results and opinions on long term plausibility of proposal.
We need to produce productivity and productivityEach staff need to be retrained and new staff brought onMore 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!
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.
Analysis of proposal after one month
Operations 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.