See It in the Numbers

Business operations require a careful analysis as we close out 2007.

Almost everything we do leads us to talking about money and costs — competitive bidding, accreditation, changes in reimbursement, etc. We continue to deal with high gas costs, rising health insurance costs, expensive new trucks and even outrageous heating bills for our offices (air conditioning if you are sitting in South Florida with me).

We also realize that sales and salespeople impact every aspect of an HME operation. It's the sales they create that make paying those bills possible and more tolerable. The more we sell, the better off we are financially and psychologically. No one feels motivated to work for or sell for an organization that is not successful.

Given that need for success, we need to consider how we are going to judge and evaluate our sales operation. What operating model are we going to use to determine success and how will we institute a profit improvement management program? Now is the time to look at all of these issues as we begin strategic planning for what could become the most interesting year in home care history.

There are a variety of performance parameters you should consider as you take a closer look at your business and, especially, your sales operation. Some of these include•sales growth per year, rental mix, average sales per transaction, sales per retail square foot and product line mix (retail sales, rehab sales, rental sales, respiratory, home infusion, and service and repair).

You may also want to consider other operational performance parameters that could include (but are not limited to) revenues by employee, stops per driver per day, inventory turnover (x times per month or quarter), days outstanding and operating margins.

Sales, unfortunately, is about the numbers.

The numbers are not subjective documents but observable facts about your operation. They provide a means to understand what is happening in your company, and, possibly, if changes are not made, what will happen again and again to hurt your business.

If you are going to achieve a competitive advantage in sales, you must:

• Manage by the numbers. Use some of the parameters listed above. Discuss the numbers with your sales team, review them at staff meetings, and review suggestions for improving the numbers.

• Enhance productivity. Review territory management plans, account call frequency records and delivery problems due to poor logistical planning. Learn how you can get the most of your time, day and your colleagues.