price for profit
2014
2017
Overhead .............. Consumables....... Labor..................... Energy...................
$0.04 $0.04 $0.38 $0.02 $0.48
Overhead .............. Consumables....... Labor..................... Energy...................
$0.03 $0.03 $0.35 $0.01 $0.42
Total..
Total..
Profit Bucket.......
$0.09
Profit Bucket.......
$0.09
Cost Per Impression $0.57
Cost Per Impression $0.51
So here is what’s happening. Even though the shop spent more money - $519,750.83 total in 2014 vs $691,818.33 in 2017, the costs for the shop dropped because they were able to produce more work.
In 2014, the total impressions were 1,099,642.
In 2017, the total impressions were 1,659,285.
The difference was the extra 559,643 impressions.
Another thing to note was that the Profit Bucket goal in 2014 was $50,000, so that was $0.09 that was included in the Cost per Impression total. For the year 2017, that was ramped up to $150,000 but because they achieved more in production that kept the Profit Bucket at $0.09 too. That’s an extra $100,000 for the bottom line. Also, if the Cost per Impression in 2014 was $0.57 and $0.51 in 2017, then that’s an extra $0.06 per impression profit as well. If the shop produced 1,659,285 impressions for the year, that’s an extra $99,557.
This is how you drive more profit to the bottom line. Remember, “You can’t manage what you don’t measure.”
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