Spare Change
Sales of Spare Change News to vendors account for the organization’s largest revenue stream. In order to address this issue we recommend several actions that can be classified as short-term actions requiring immediate attention and can be easily implemented within a 3-month period. In addition, we would like to recommend certain long term actions, which appear to be costly and need to be implemented in several stages. We decomposed the issue of 25% lag in budget into three main areas that we as a group along with the organization need to tackle. On the basis of our analysis of record keeping activities within the organization we recommend that daily book keeping is organized in spreadsheet using Excel or Google Docs ( See Appendix 1). If done so the organization will be able to keep track of active and inactive vendors, peak sales days and hot sales zones or locations. It will also increase the organizations efficiency in terms of available data for future reference and decision making. Also, we recommend that the outline of the daily sales report is changed so that it reflects the current state of inventory and sales objective fulfillment. The daily sales template contains all formulas and is ready to use by anyone in the company. We are willing to walk the person in charge step by step through the idea and logic behind the sales report template in case it is necessary. We have also compiled a monthly sales template, which will help the organization keep track of the monthly movement of inventory, cash inflows and outflows, as well as vendors’ activity and performance (See Appendix 2). In addition we have created a formula calculating a monthly score with regards to vendors’ performance. We took into consideration the difficulties associated with the zone in which a vendor chooses to operate, the number of issues sold and issues returned. We believe that the current strategy of rewarding consistency and performance used by the organization creates incentives for the existing vendors. However, we believe that by implementing a monthly high score achievement will further incentivize the existing vendors and attract new comers.
Sales Force
Although Spare Change is registered as a non-for-profit organization it is still a small business,