Reducing variable costs

A short story about a business owner who has reduced variable costs by 67%

This is the story of a caravan park in the West of England.

This is a caravan park with an eye watering balance sheet.

Year on year falling margins.

A man who took a free trial

In conversation with the site owner, staffing has remained static for 40 years, excuse the pun.

Growing year on year.

His sales, admin and field workers were roughly the same proportionately.

The caravan salesman produce profits

The admin collects and manages money, regulation, wages and site fees.

The field workers do all the maintenance and cleaning and compliance.

Reducing variable costs, difficult to see how to lower a wage bill of over £1 million a year.

Let’s just imagine the management , sales , admin and maintenance of over 1000 caravans shall we ?

The office was sprawling with dozens of filing cabinets.

Used to have 9 networked printers !

Over 30 telephones now removed.

A highly complex detailed business with rigorous regulation.

Documentation moved to off site storage.

How was this change implemented ?

The owner of the park instructed an experienced admin lady to make a list.

A list of everything important

Handled in each department within the office.

It took her two entire weeks

That hierarchy structure of who does what actually became the core structure of a new Capsule CRM.

Capsule has infinite tagging and searchable fields.

Caravan number last cleaned ?

Caravans due to be cleaned ?

Arrivals

Departures

Owners

Damage reports

Caravans with an electrical certificate, or gas or fire alarm, methane gas inspection

The tags and fields can be added or removed as the project advances.

It was agreed that each caravan was put into a searchable field along with owners documentation, contact details etc

Use tags for every other important future search they may need

Client Relationship Management is a little misleading.

Client Relationship Management results in staggering efficiency savings.

The redundancy programme has been a natural process of an older team.

The Capsule CRM is shared by all staff

Including the owner and accountants.

They share the same diary.

Share the same email system.

Have access to relevant digital signature documentation.

Staff use the same telephone system inside the CRM.

Using their own mobile phone, Capsule records everything.

The much smaller admin team work from home at the moment.

The big surprise is that it doesn’t seem to make much difference, the variable costs keep tumbling.

The TEAMS reporting system can pull all relevant information including sales pipeline, proposals, wage bills etc

The single accountant now manages everything through XERO, connected to the CRM.

I hope you are inspired by this story, start your free trial today


Leave a Reply

Your email address will not be published.