Bates Tells SEFA: “Force Payroll to Grow Slower Than Sales”
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Bates Tells SEFA: “Force Payroll to Grow Slower Than Sales”
Holding down payroll costs may be the first and best step to higher profits, Dr. Albert Bates told the Southeastern Fastener Association.
In a sample income statement for a distributorship with $10 million in sales, Bates, founder of chair of the Colorado-based Profit Planning Group, pointed to the payroll and fringes totaling 20%, which he declared was “too high.”
Bates’ profit improvement model calls for distributors to “force payroll to grow slower than sales.”
He cited a National Fastener Distributors Association survey from 20 years ago which “shows payroll today at the same percentage of sales.”
• For the full article on Bates’ Southeastern Fastener Association presentation, FIN Subscribers CLICK HERE.
• After Bates’ SEFA presentation, Jake Davis of BTM Manufacturing, Craig Fenland of Eurolink FSS and Doug Ruggles of Martin Fastening gave “Tips That Work for 3 Fastener Executives.” Come back to GlobalFastenerNews.com on Monday for the SEFA panelists tips.
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