Labor remains the single largest yet least understood controllable expense for independent retailers.
PROBLEM 1: Most independents spend 10-15% more in payroll vs larger chain competitors.
Why? Because most independents rely on Sales Per Hour (SPH) or Payroll % to forecast and manage their store staffing.
PROBLEM 2: Sales Per Hour (SPH) and/or Payroll % is an after the fact measure of labor dollars used and not an accurate indicator of hours needed to serve your business needs.
Why: Sales Per Hour (SPH) is NOT Based on Item Level Productivity therefore does not account for business dynamics such as: cases per hour, items rung per minute, first week of the month, sales plan influence, etc.
PROBLEM 3: The investment required from large labor management software companies is cost prohibitive for most independent retailers.
Why: They sell multi-site software at a huge cost that is 80% software and 20% process vs providing a solution that’s 20% software and 80% based on the unique, store-by-store needs.