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Planning Success for
Independent Business Owners

Morris Case

Morris

CASE STUDY


storefront

 
 
Company Background:

The Morris Family founded Morris Appliance in 1946 as a friendly family-owned and customer-oriented business to provide the residents of Middle Georgia with a place to purchase quality home appliances. The store is 12,000 square feet in size and offers the customer a tremendous selection of refrigerators, freezers, washers, dryers, dishwashers and room air conditioners.

JRM Solution using modules consisting of:

 

  • Sales Training and Sale Management

  • Organizational Development

  • General Consulting

  • Extended Follow-through Agreement

 

*Actual JRM Client

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Situation:

*Morris Appliance had gone through several years of declining sales and profits in addition to a loss of owner enthusiasm.  As a result ownership was taking seemingly positive steps to turn the business around; including changing buying group affiliation and a renewed effort to build his company's sales.  However, the owner was micro-managing every part of his business and as a result was working 12 to 14 hours a day, 6 to 7 days per week.  Increasing BIG BOX competition and the fear of losing control of his business, Lee was constantly struggling with key and lingering issues surrounding his business including organizational control, ever increasing expenses, and a need to increase his bottom-line profit.  When Lee finally allowed JRM to do a two-day business performance analysis, the owner and employees were at a breaking point
 

JRM Solution:

 

  • Re-defined lines of communication

  • Created a management team consisting of the owner, sales manager, office manager, and operations manager

  • Developed a company mission statement for the  team

  • Trained the management team to work as a synergistic, cohesive group that worked interdependently of one another

  • Trained the team on how to have effective meetings

  • Created job descriptions: defining everyone’s roles, responsibilities, tasks, and measurements

  • Created job appraisals and trained how to effectively perform them

  • Defined and implemented company selling system

  • Set goals for sales and store performance

  • Redefined compensation based upon sales performance

  • Created tracking system for sales performance and goal attainment

  • Increased delivery charges and service fees

  • Implemented a program to effectively sell extended warranties

  • Created a procedure manual for the office

  • Stopped price negotiation

 


 

Results:

 

  • Owner income increased by 11.6%

  • Profits increased 2.4 times

  • Total sales increased by 16.8%

  • Appliance sales increased by 16.6%

  • Delivery charges increased by 22%

  • Extended warranties increased by 62%

  • Gross margin increased from 31.3% to 31.9%