Spring Edition

Press Release

LAGUNA NIGUEL, Calif., (May 28, 2004) ~ Several years ago we announced the formation of KehoeGuido, a green industry consulting and training firm. As of June 1, 2004 KehoeGuido will become two firms, Kehoe & Co. and Guido Consulting. Kevin Kehoe and Judy Guido have together decided that they are pursuing some unique opportunities individually. You can still reach Kevin at 949-715-3804 or kkehoe@earthlink.net. You can reach Judy at 818-800-0135 or jmguido@sbcglobal.net. Kevin and Judy plan to continue to team on projects over the next year, and you can contact them at either address.

Managing by the numbers

Now is a good time to take a breath, and assess your financial situation given that the Spring Rush is almost over. There are two key indicators that we use to assess financial health, and determine any changes in pricing, scheduling, and cost management to assure profits at the end of the year. These indicators are better to use at this time of year since your P&L statement won't tell you what you really need to know. These two numbers are (1) Sales dollar volume year to date versus Budget, and (2) Realize Rate Dollars per Hour versus Budget.

Negative Sales dollar volume versus Budget variances (meaning you are behind in year to date recognized revenues) in spring can be difficult to recoup without a revised pricing and a lead management plan.

Negative Realize Rate variances (The realize rate is calculated by dividing revenue volume by paid field production hours) usually indicate inefficiencies in the field, and need to be aggressively addressed to get crew size, overtime, and overall hours back in line with revenue volume. Remember, it's critical to take a hard look at your results at the end of the Spring Rush to make sure you make adjustments, so you don't end up disappointed with your profit margin at the end of the year.

Kevin Kehoe