|
|
| |
| |
|
"Our ROI has steadily increased, I think the key for us in
realizing a good ROI was that our expectations were realistic,
we knew that it would not happen in 24 hours, but after a couple
of months we knew AdvancePro was saving us money."
Steven Arrow,
Software Connection USA. |
|
|
|
|
|
Realistic ROI
Forecasts
It’s always easier to buy something when you are
confident you’ll benefit from that purchase. And when you can see a
return on your investment in months instead of years its even
easier. Trouble is forecasting of ROI with any degree of accuracy is
difficult. It requires a complex set of calculations that cover
virtually every facet of your business. To help we’ve created a high
end tool for calculating ROI that makes it relatively simple too see
what effect purchasing AdvancePro will have on your bottom
line.
True ROI in Less
Than 3 Months
The sample we’ve provided below uses data that is typical
for a business running AdvancePro and covers a period of six
months. There was no need to go beyond this period since payback
usually begins in less than three months.
|
|
|
|
|
|
Staff cost money so it only
makes sense to make them as productive as possible. When paper
driven processes are replaced with easy to understand software
procedures your staff works more efficiently and you save money. |
|
LABOR |
|
Labor Costs |
Warehouse Shift 1 |
Warehouse Shift 2 |
Warehouse Shift 3 |
Warehouse Shift 4 |
Clerical 1 |
Clerical 2 |
Total |
|
Number of Employees |
2 |
0 |
0 |
0 |
2 |
0 |
4 |
|
Average Wage |
$15.00 |
$15.00 |
$15.00 |
$15.00 |
$14.00 |
$14.00 |
$14.50 |
|
# Hour Worked Per Day |
8 |
8 |
8 |
8 |
8 |
8 |
8 |
|
# of Work Days per Month |
22 |
22 |
22 |
22 |
22 |
22 |
22 |
|
Burden Factor |
40% |
40% |
40% |
40% |
40% |
40% |
40% |
|
Expected Monthly Sales Variance |
5% |
5% |
5% |
5% |
5% |
5% |
5% |
|
Salary Growth per Month |
4% |
4% |
4% |
4% |
4% |
4% |
4% |
|
Expected Labor Reduction w AdvancePro |
20% |
20% |
20% |
20% |
20% |
20% |
20% |
|
Labor Cost Totals |
Month 1 |
Month2 |
Month 3 |
Month 4 |
Month 5 |
Month 6 |
Total |
|
Number of Employees |
4 |
4.04 |
4.08 |
4.12 |
4.16 |
4.20 |
|
|
Average Wage |
$14.50 |
$14.50 |
$14.50 |
$14.50 |
$14.50 |
$14.50 |
|
|
# Hour Worked Per Day |
8 |
8 |
8 |
8 |
8 |
8 |
|
|
# of Work Days per Year |
22 |
22 |
22 |
22 |
22 |
22 |
|
|
Burden Factor |
40% |
40% |
40% |
40% |
40% |
40% |
|
|
Expected Monthly Sales Variance |
1% |
1% |
1% |
1% |
1% |
1% |
|
|
Salary Growth per Month |
0% |
0% |
0% |
0% |
0% |
0% |
|
|
Expected Labor Reduction w AdvancePro |
20% |
20% |
20% |
20% |
20% |
20% |
|
|
Total Burdened Cost before AdvancePro |
$14,291 |
$14,434 |
$14,578 |
$14,724 |
$14,871 |
$15,020 |
$87,920 |
|
Total Burdened Cost after AdvancePro |
$11,433 |
$11,547 |
$11,663 |
$11,779 |
$11,897 |
$12,016 |
$70,336 |
|
Labor Savings |
$1,429 |
$2,887 |
$2,916 |
$2,945 |
$2,974 |
$3,004 |
$16,155 |
|
|
|
* Note that
first year Labor savings have been halved to be conservative |
|
|
|
|
|
|
|
