Automotive & HD Business Management Articles.
Bob Greenwood. February 18, 2015. ( over 6 years ago ) 1,635 views
Many shops spend a lot of money advertising their business and not enough money on properly educating themselves or their staff.
Many years ago, Harvard Business Review made an important observation that our sector of the industry never picked up on or paid attention to when they published the following facts:
$1 spent on Advertising = $2 in Revenue
$1 spent on Education = $40 in Revenue
Can you analyze why the huge return?
We tend to throw out a lot of dollars trying to create “activity” (more sales) for the business which gives a return for only a short period of time before more dollars have to be put into the pot to drive more activity. But we, as a sector, have not realized the return on investment (yes investment, not an expense) for quality education, throughout our business, can provide us. Consider—once you truly learn and understand something such as specific technical training topics or the details of a proven business concept, you get to use that knowledge over and over and over providing an incredible return on that investment made to the business.
You can’t say Harvard doesn’t know what they’re talking about, so perhaps our sector should rethink how much we need to invest annually in quality education (technical and business) in order to move our business to the next level where it needs to be within the next 3 to 5 years.