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Internal Proposal

Internal Proposal. LA Fitness: How can we increase EFTs?. What’s the problem?. Our MOTIVATION level tank needs to be FILLED UP. LA Fitness is a company that strives to provide the most comfortable working and exercise environment for those who enter its doors.

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Internal Proposal

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  1. Internal Proposal LA Fitness: How can we increase EFTs?

  2. What’s the problem? Our MOTIVATION level tank needs to be FILLED UP. • LA Fitness is a company that strives to provide the most comfortable working and exercise environment for those who enter its doors. • As a business, we must also strive for productivity and profitability. • As of 2013, EFTs have dropped from 5 million to 3.1 million. • We need to do better

  3. How do we solve this problem? • With each EFT cleared up, LA Fitness earns on average of $35 • Average salary of front desk/EFT staff member= $8.00/hr • Average front desk/EFT shift= 4 hrs • One EFT clear up covers 95% of a staff members daily shift salary • EFT staff member, on average, can produce 15 EFT clear ups in 4 hour shift • LA Fitness needs to hire more EFT staff members • EFT clear ups are easy money, but the staff to produce them aren’t availiable • Proposal includes each facility to increase EFT staff by 4 individuals and increase shift to 6 hours, from the regular 4 hours.

  4. Cost analysis • $8.00/hour staff salary • Each clear up yields $35 profit • Current: • $8.00/hr x 4 hours = $32 • 15 EFTs x $35 = $525 • $525-$32 ( salary ) = $493 profit on each shift Currently, we are making pocket change!!!!

  5. Cost analysis • Proposal: • $8.00/hr x 6 hours = $48 • 30 EFTs x $35 = $1,050 • $1,050-$48 = $1,002 • Over 50% profit increase by adding 2 extra hours. We need to be making REGISTERS full of PROFIT!

  6. How do we do this? • May: • Each Operations Manager hires 2 extra staff members • Begin training them for EFT • Determine most productive hours by doing time study

  7. June • Begin staffing for EFT • Document and track EFT ratios and productivity per hour • If staff aren’t producing, hire new staff or rotate staff to increase productivity • Report back to District Managers with results and opinions on long term plausibility of proposal.

  8. In conclusion • We need to produce productivity and productivity • Each staff need to be retrained and new staff brought on • More hours per shift will increase profitability and increase employee morale as commission is involved (included in profit analysis) LET’S ROLL THE DICE AND SEE IF A SIMPLE CHANGE CAN CHANGE THIS COMPANY FOR THE BETTER!

  9. Transmittal letter • On behalf of LA Fitness, I am delighted to present this proposal regarding how EFTs and productivity can be decreased. From a previous round-table discussion, the points discussed are included in this proposal. • Increasing Profitability • Increasing Hours • New staff • Analysis of proposal after one month • Operations Manager opinions • As a company devoted to bettering the lives of individuals who want to better their health and lifestyles. But as a business, in order to remain helpful in many lives, we must make a profit so we can increasingly better our company for everyone.

  10. Thank you • THANK YOU TO EVERYONE FOR YOUR TIME!!!! • LET’S MAKE THIS A GREAT YEAR!

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