Want To Save Money? Here’s How:

August 26, 2015 |

training Want To Save Money? Here’s How:Many business owners and executives unfortunately do not recognise the importance of training, making excuses like “We are too busy to learn something new right now.” or “We just don’t have the money to pay for training.”

If you were given the choice of flying with two different pilots, one being fully trained and the other not—which one would you choose? But what if there was no “up-front” cost for the untrained pilot? You still wouldn’t do it?

Training your team costs money, takes up precious time and materials. Another reason businesses often neglect to train employees is because of past training experiences. Sometimes the training was poorly conducted, or the topics were just not relevant.  Failed training comes at a high cost, and businesses often don’t want to take that risk. At Master Retailing we would like to think we understand retail better than most, and therefore we keep things simple, stick to the basics, and keep costs to a minimum.

However, consider the cost of not training your team!

1. Untrained Employees = Unhappy Employees = Unhappy Customers!

An employee who feels unsupported and inadequate is going to be a very unhappy member of the team. Unhappy team members not only influence their colleagues, they also impact on customer service which automatically results in loss of turn over. What would the cost of one lost sale a day, per sales person, across all your outlets amount to over the period of a year?

 

2. Untrained Teams are less Productive.

The quality of an untrained team’s work is of a lower standard and of less value. A well trained, productive sales person is able to drive add on sales which over the period of a year can amount to millions in additional turn over.

 

3. Untrained Workers Are Inefficient.

More time (and therefore money) and effort is spent when employees aren’t fully or properly trained to perform their tasks or to fulfil their responsibilities as it takes them longer to do the work.

 

4. Lost Time/Money Due to Mistakes.

When an untrained worker makes a mistake, time and materials used are lost. The work then has to be done redone, or worse, an incorrect or defective product is delivered to a client who then tells his circle of friends and family about his experience!

 

5. An Increase in Miscellaneous Expenses.

These are more difficult to track or attribute to untrained employees as they are often hidden costs however you still incur these costs. For example, creating a CAD drawing incorrectly means having to reprint the file. That means it takes more time to fix the mistake, more materials cost in paper and ink, and more time rechecking the work. And most importantly your customer is left waiting! If all employees were correctly trained chances are they would get it right first time, more often resulting in a decrease in miscellaneous costs!

 

6. Lost Customers.

Untrained employees can cause many of the mistakes listed above, and those mistakes and inefficiencies will eventually cause your business to lose customers. Business often spend large sums of money to attract new customers to their stores, why then risk their customer’s experience by leaving them in the hands of an untrained team?

The cost of training interventions can be measured up front as a line item and may be difficult to handle on a tight budget however the cost of not training your employees will cost your bottom line even more.

We are confident that Master Retailing can add value to you or your business through our very affordable solutions. All our material can be customised to suite your business needs, at no extra cost!

Please contact us on 012 654 4688 or info@mretailing.co.za for a no obligation, customised quotation.

Category: Blog

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