34. Driving Profitable Growth – How our BDM’s increase profit margins

34. Driving Profitable Growth –  How our BDM’s increase profit margins

We’ve been instrumental in putting in the
fresh offering. One of our biggest successes is in putting in the cake displays for individual
cakes, one shop in particular is doing about 200 individual cakes already and the profit
in these is excellent. That’s one of the areas, the other one is putting in the bake off ovens
and being able to do a bacon roll offering, roll and sausage and then a lunchtime pie,
pastry. All these things have been instrumental in helping the business grow and getting footfall in. Bottom line, there’s two ways of growing people’s business. One is getting more people
through the door and that’s by effective marketing and getting people to come in so if the average
basket spend is a fiver and you get 1000 people, your sales are five and a half. If you want
to grow that then you need to get more people through the door or get that 1000 people spending
more. So sometimes it’s about rationalisation making the less is more sort of concept whereas
you take some of the cheaper brands off. It’s only going to be 20 pence here and 30 pence
there but what you are actually doing is encouraging the basket spend up. At the same time, we’ve
got rescan which is our own till system. With rescan you can actually identify areas that
work or don’t work for you, what margins are maybe low so you can actually look at
how you can improve the margin in each section as well as separately as opposed to a whole.
But in the main, it’s about regular contact and actually reviewing on a regular basis.

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