HOW TO

SHOP LAYOUT BY ERIC LAZAR

non-revenue-generating fixed expense.

We have taken a uniquely aggressive posture towards equipment purchasing, helping transform the franchisor’s previously held best practices of gradually building and amassing technology based on revenue.

I do have to warn you: Ours is not a model for the faint of heart. The guidance offered here, as it pertains to equipment purchases, is grounded in a few key beliefs:

Data: The numbers don’t lie. As you prepare to make a purchase, know your average monthly production per machine by quality mode, ink cost, labor, outsourcing percent, etc., and be able to compare those to the equipment specs that you are considering.

From this information, you can quickly determine your ROI. It’s completely objective, and you can weight the values according to your business needs.

Furthermore it helps eliminate biases about brands, personalities, or even how “sexy” that machine might look sitting in your shop.

Speed: If you focus on the rate of production, it allows you to pack more punch into less area—simply put, “production capacity per square foot.” Doing so mitigates the need to purchase additional equipment sooner, reduces the necessity for outsourcing due to lack of production power, and decreases cost of labor for unnecessary over-time.

Subjectively be able to make intelligent, but conservative, assumptions about how your business is trending. Does the new machine create substantial additional bandwidth that will allow you to level up by at least two times?

It’s very subtle, but it is incredibly empowering to begin asking clients ‘how quickly would you like it?” versus “when do you need it?”

Innovation: There is something to be said for “tried and true.” You know what you’re getting because everyone already has it. However it’s not a differentiator, and there is inherent risk with new technology.

Even as a first mover, we seek closely aligned improved capabilities for our core business as the primary focus and revolutionary developments secondary—but, finding both is always our objective.

Figure out how to do what you do better, faster, and cheaper, complemented by