You may want to enter sales thresholds so that you can better analyze the profitability of your business. Sales Categories offer the ability to monitor your business operations in a quantifiable way. By paying attention to the measurable aspects of your business, you can streamline your operations and prevent surprises to your budget from sneaking up on you, especially with labor costs and accurate scheduling practices. The way you decide to use Sales Categories is up to you, as there are many options to experiment with.
For example, Joe, a grocery store manager, might want to monitor the number of items processed per minute at his store’s registers. Like all managers, Joe does not want to have more employees on hand than are required for the amount of work to be done, so he wants to compare the number of items processed per minute to the number of cashiers working. Each cashier can process 100 items per minute. If the store is processing 1,000 items per minute, Joe needs 10 cashiers on hand to keep up with the amount of work to be done. But Joe only has 8 cashiers on hand! Should he call someone to come in to work? Well, if Joe has set his Sales Threshold appropriately to ten percent (1 employee is 10% of 10 items per minute), TimeForge will notify him that he is short-handed.
For example, by comparing Gross Sales to Labor Costs, you can have a benchmark to understand how well your business ran during a certain period of time. An optimal ratio of Gross Sales to Labor costs for your business might be 10, like Joe’s.
Here’s how to enter a desired threshold to a sales category.