Masonic Hall Seminar

Friday 25th October 2013

•Talk about cost centres and how to control them

•Introduce a buying directory

•Q & A

•A presentation from one of the suppliers

Cost centres and controls

• Labour• The bar• Food (unless run under a franchise)• Rates and water rates• Energy• Other

Labour

Current minimum wage:

£6.31 per hour

Labour

1 saved hour per week =

£328.12 per year

Labour

1 saved hour per day =

£2303.15 per year

Labour

£2303.15=

£5527.56 Per year through the till assuming

50% GP plus vat

Labour

• If employing part time staff, keep their earnings below the employer’s NI level

• What is the employers NI rate?

•13.8% over £148 approx 23 hours

• This increases the effective hourly rate to

£7.18 per hour

Labour

• Real time reporting to HMRC• It is imperative that accurate records are

maintained • The use of an accountant or bookkeeper is

recommended

The Bar

The Bar - stocktaking

A good stocktaker should give the following:• The retail value of stock consumed• The surplus or deficit• The gross profit – cash and percentage• The gross profit per item• The value of stock on site

The Bar - stocktaking

He should also• Recommend retail price increases• Advise on overcharges from suppliers• Highlight slow moving items• Recommend stock holding levels• Advise on actions necessary to resolve

problems

The Bar – Stock control

Ideally, one person should be responsible forordering and stock control and should:

The Bar – Stock control

Ideally, one person should be responsible forordering and stock control and should:• Order weekly using a stock and order form

The Bar – Stock control

Ideally, one person should be responsible forordering and stock control and should:• Order weekly using a stock and order form• Check the delivery for items brought in and

taken out

The Bar – Stock control

Ideally, one person should be responsible forordering and stock control and should:• Order weekly using a stock and order form• Check the delivery for items brought in and

taken out• Check the correct product has been delivered

The bar – cash control

• Staff should count the float and sign for it• Staff should count a spare float and sign for it• Staff should be informed that random till

checks may be carried out• Whenever a till is checked, staff members

should count the cash and report the result• After counting, the till report should be taken• Record all results, including staff on duty

Food

• Costs can vary daily – adjust retail prices if necessary. Try to negotiate prices for a fixed term

• Standard recipe cards• Portion control – use measured utensils• Wastage – the chef should control this• Staff feeding should be recorded

Rates and water charges

• Last revaluation carried out in 2010• Next is expected in 2015• The RV can be challenged - many firms will do

this – some on a ‘no win no fee’• Monitor water usage by regularly (monthly)

taking & recording meter readings• Challenge surface water charges

Energy• Recent increases of around 10% on electricity• Forecast is for similar rises for several years• Ensure contracts are monitored & renewed or

changed to ensure rollover charges are not applied

• Recent offer from one supplier – 33% increase on both unit & standing charge

• Rollover rate increases – 95% on units &

428% on standing charge

Energy – Make it Cheaper

• Search all current offers for gas and electricity & recommend best value

• Make contact before current contract ends in time to send termination notice

• Supply draft letter to terminate• No obligation• NO CHARGES

Energy – Estimated savings

• Hall in the Blackpool & Fylde area

Electricity - £394, Gas - £100 = Total £494• Darwen

Electricity - £572, Gas - £616 = Total £1188• Cleveleys

Electricity - £1095, Gas – £1688 = Total £2783

Energy

• Halls with the same contract end date will be able to negotiate as a group

• Between East & West Lancashire there are approx. 60 halls including the Provincial offices

• As with the water meter, it is good practise to read meters and record usage

Other• Insurance• Trade waste & toilet services• Laundry / linen hire• Cleaning materials, crockery, cutlery&

glassware• Licenses• Phones & broadband• Statutory testing• Bank charges and credit cards

Insurance

• Many halls use Ingram Hawkins & Nock• Cover includes regalia owned by Lodges – do

they know? They may be able to save money• Usually a 3 year agreement• Don’t just accept their renewal quote

Trade waste & toilet services

• When comparing prices include waste transfer certificates

• Check local authority prices

Laundry & linen hire

• More than most, this is about quality and service, rather than just price

• Confidence that linen will be spotlessly clean and delivered on time is key

• Can anyone recommend a good company?

Cleaning materials, crockery etc

• On checking prices for crockery recently, it became obvious savings could be made on cleaning materials

• Existing supplier suddenly found he could improve discounts

• ‘Valued customers’ are never offered better terms

• Regularly review all prices

Licences

• Liquor, TV, PRS & PPL for most halls• Normally the fees are fixed• TEN’s – if frequently used, consider a new

liquor licence• A TEN costs £21, most licences cost £180• PRS & PPL – based on returns made by you as

the licensee so check for accuracy

Phones & Broadband

• Ensure that contracts are monitored to avoid rollover rates

• Make it Cheaper

Statutory testing

• Fire safety equipment & systems, portable electrical appliances, gas appliances, lifts & hoists – annual

• Electrical installation – every 5 years• Specialist companies may be cheaper than

normal contractor

Bank charges & credit cards

• Many banks offer charge free accounts• Consider moving at the end of the period• Commission rates on credit cards vary• It is not necessary to use your main bank• Make it Cheaper offer a service

Calendar

• To avoid being moved onto rollover rates, record all contract end dates and, more importantly, notice dates

Contract end dates / Notice required dates

2013 January February March April May June July August Sept October Nov DecGas - Masonic                 5th      Gas - Social                 5th      Electricity - Masonic   14th                    Electricity - Social   14th                    Electricity - flat                     12th  Phones                 30th   30th  Insurance                 1st     1stBroadband                 1st     1stTrade refuse                        Toilet services                 26th     26thFire equipment testing                        PAT testing                        Gas safety test                        Lift safety test                        

2014 January February March April May June July August Sept October Nov DecGas - Masonic 5th           31st       30th  Gas - Social 5th           31st       30th  Electricity - Masonic                        Electricity - Social                        Electricity - flat   12th                    Phones                        Insurance                        Broadband                        Trade refuse                        Toilet services                        Fire equipment testing                        PAT testing                        Gas safety test                        Lift safety test                        

Buying directory

• Meant as a point of reference only• Living document - To be updated by feedback

from you• Currently showing companies used by

Cleveleys and rates charged• This has nothing to do with the Provincial

buying group set up by Christopher Barlow

Commercial Buying Group

Any Questions?