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THINKING BUSINESS
a blog by Chris Barrow

Associate profitability - what to do when there isn't any



This evening, on my weekly live webinar for clients, we will be answering the question:


"When you have calculated that your associate is either losing you money, breaking even or below the expected profit margin for their room, how do you approach the conversation with them?"


Just in case you were wondering - the majority of associates fall into this category (I challenge you to do the numbers for yourself) and so knowing how to handle this situation is mission critical to your financial well being.


Let me share with you what I WILL NOT be suggesting the dialogue begins with:


  • We are going to have to introduce a sliding scale;

  • We are going to have to reduce your percentage.


In the current clinical labour market, neither of these tactics will work - you will simply have the associate looking for another job.


So what's the solution?


  • Accurate calculation;

  • Transparency;

  • Collaboration.


I'll be reminding my clients how to get the numbers right, then how to share those numbers and, finally, how to negotiate a "win:win" agreement to move forward.


There is a "win"win".




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