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INTERNAL PROPOSAL LA Fitness: How can we increase EFTs?

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WHATS THE PROBLEM? 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 Our MOTIVATION level tank needs to be FILLED UP.

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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 arent availiable Proposal includes each facility to increase EFT staff by 4 individuals and increase shift to 6 hours, from the regular 4 hours.

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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!!!!

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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!

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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

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June Begin staffing for EFT Document and track EFT ratios and productivity per hour If staff arent 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.

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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) LETS ROLL THE DICE AND SEE IF A SIMPLE CHANGE CAN CHANGE THIS COMPANY FOR THE BETTER!

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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.

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THANK YOU THANK YOU TO EVERYONE FOR YOUR TIME!!!! LETS MAKE THIS A GREAT YEAR!