Schneider’s Liquor Company, Inc.
“We are an improved and better focused Company.”
David Engel has done an excellent job identifying and implementing key changes to the way we execute and manage our business in the areas of operations, sales, inventory, and finance; resulting in documented increased profitability.
Benefits realized as a result of the project are increased profits, and increased performance from our Mangers and employees. We believe this is a direct result of AMS’s strategies, analyses, and implemented advice.
This process also benefited our company by helping us identify areas of untapped competence of certain employees; and how to harness that competence for improved operations and profits. Very importantly, Josh Genderson (the heir apparent) has developed his business acumen substantially, and has taken a pivotal role int he AMS process. Josh has stepped up to the plate to provide valuable assessments and business judgement in the development of the many exciting company improvements implemented. For AMS’s influence here, we are grateful.
Below is a partial listing of specific, notable accomplishments which have made us more efficient and effective. A descriptive summary of the improvements, systems, changes and other profit actions implemented by our Company through AMS’s work and guidance include:
- Our sales personnel are utilizing consistent and much more effective sales techniques. These techniques, approaches, and scripts were documented, training and coaching sessions were held weekly, and a system to produce sales and financial flash reports was established for monitoring and ensuring performance. Sales improvements were implemented and training conducted at the direction of David; resulting in an amazing increase in our average ticket and average profit per sale. We now track the sales personnel’s activity and results weekly. We know precisely and how much “value added gross profit” each sales person provides; resulting in an average profit per ticket increase over last years’ experience… ranging between of $5 to $7 per ticket since strategies and training was completed. These dynamics translate into a $500,000 to $700,00 Annual profit improvement; or $1,500,000 to $2,100,000 over the 3 year measurement period (for this improvement alone).
- As part of the sales plan, David implemented a gross profit based compensation plan eloquently “restructuring” our consultants’ compensation plan to ensure that we pay only for true “value added” sales performance. We now only reward profit and customer satisfaction enhancing interactions with our customers. As we have learned, we should reward what we want. The structure also makes us financially indifferent for short-term poor performance (eliminating our frustrations and costs associated with employee inconsistency).
- We restructured the process by which we “pull” from our warehouse and other storage areas to re-stock merchandise. Our inventory is now organized for fast retrieval, and we eliminated significant unnecessary movement. This results in substantial cost and operational savings, increased inventory controls, and speeds customer service.
- Based on AMS’s insightful analyses of our margins on various categories, we have made dramatic changes to our planogram facings. David uncovered some very interesting profit dynamics, and we have repositioned many items, and their shelf locations and prominence. We are eager to capture the additional profits resulting from appropriate presentation and representation of merchandise, access to merchandise, and our sales consultants’ ability to interact and communicate more efficiently and effectively with our customers about our product offerings.
- AMS identified actions required to increase our cash flow, capital, and operational efficiency through purchasing restraints, rationalizing store and warehouse stock levels, and better controls on purchasing. We have identified excess and dead stock and have implemented systems to control dead stock levels.
- Our “Service” levels have increased approximately 25%. “Serviced” customers were defined during the project as those customers with which our Consultants interact and influence toward the purchase of appropriate product offerings. We learned through this process that increased customer interaction by our sales consultants has huge benefits to customer satisfaction and our profits. “Service” levels are now a key metric and performance level indicator at our company.
- We have learned from this process that monitoring and measuring employees, operational and sales performance and key metrics weekly; enables us to adjust and correct for unfavorable short-term results, preventing unfavorable long-term results. This new approach puts us in better control of the performance of and profits from our business.
- We have implemented price increases on certain items resulting in an immediate “kick” to profits. We did this, with confidence, based on thoughtful analyses and observation of our previous pricing strategy. This change has been successful.
- We have also implemented new policies and procedures throughout the company; and improved policies and procedures in many key areas. AMS has provided our managers the tools to effectively enforce compliance with policies and procedures through management systems and specific punishment and incentive plans. Our managers are pleased to have these tools and are excited to utilize this new approach. They will utilize these new tools to make them more effective as managers.
- We have implemented new time keeping policies and procedures which reduce payroll expense, and avoid unnecessary overtime.
- We have also gained insight to improvements and modifications to our management habits and techniques as owners and how we can change our behaviors to empower our managers. Then too, with David’s guidance, we have improved our focus as Owners on activities which provide the Company the most value. We have delegated many tasks, and are pleased with the results (and the work lifestyle benefits).
- David has developed an incentive plan for front line employees to assist management in gaining compliance with management directives and increasing performance levels of these employees.
In short, as a result of AMS’s work, we are an improved and better focused Company. We know what items to focus on, who should focus on those items, and when focus should be applied. Proper and effective focus positively impacts our profits.
This list of improvements implemented goes on…. Frankly, we were concerned in the early going about the cost of the project, but we are glad we saw the project through. The end result is that we are very pleased with the work and results obtained by AMS and David Engel; so much so, we are continuing and expanding AMS’s work at our Company in January, 2014, with a deeper assessment and strategy formulation in certain areas for which we see great additional profit improvement opportunities.
We fully believe that we are on track to realize over $2,500,000 of profit improvement over the next three years. Our profit improvement is already documented by our sales and profit metrics (produced weekly). As we are entering our busiest time of the year, we are looking forward to (and expect) our cash flow and financial statements to fully reflect the financial benefits of the AMS project. In short, we expect to realize a financial return of many times our $300,000+ investment with improved financial statements for the semi-annual period ending January 31, 2014.
We highly recommend AMS and David Engel to other business owners seeking additional profits and a more valuable company.
Schneider’s Liquor Company, Inc.
300 Massachusetts Ave. NE
Washington, DC 20002