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Profit Management for Dealers "There are many advantages to an online university," says Michael Workman of Michael E. Workman Associates, the company hired to develop the course content for FEDA Online University. "You can customize it specifically for the needs of the dealer community. Costs are minimal, there are no travel times and participants can access the program from anywhere and at any time. So if they have a spare 20 minutes, they can log on, do part of a lesson and log off." uick Question: When an average foodservice equipment dealer makes a sale for $100, how much of that $100 is likely to be profit for the dealer? Is it $35 to $50 dollars? What about $10 to $24.99 or less than $2? After factoring in payroll, the Cost of Goods Sold (COGS), occupancy and other expenses (not to mention all of the effort that goes into closing a sale), the average foodservice equipment dealer keeps only 1.9 percent of sales revenues. So with a profit margin of 1.9 percent, a $2,000 sale would generate a $38 profit ($2,000 x .019 = $38). This is the challenge facing most dealerships, according to "Profit Management for Dealers," one of six dealer-specific online courses available to all FEDA members at the FEDA University Online. Each course contains lecture material, accompanied by audio, graphics, examples, exercises and a post test, Q Payroll Interested in learning more? Visit the FEDA Online University in the "Members Only" Section of feda.com. "Profit Management for Dealers" is comprised of six lessons, including a section on the financial statement, pricing for profit and selling for profit. Lost your password? Call the FEDA office at 800677-9605 to retrieve it. K Discount Selling Price 0% $1,000 – $755 + $159 + $23 + $44 + $19 2% $980 – $755 + $159 + $23 + $44 + $-1 5% $950 – $755 + $159 + $23 + $44 + $31 10% $900 – $755 + $159 + $23 + $44 + $81 22 FEDA New s & View s COGS which is used to determine a student's level of understanding after taking the course. In "Profit Management for Dealers," students receive a crash course in the mechanics of profitability. How is profit calculated and what variables influence it? What is the typical profit for a foodservice equipment dealer? Throughout the course, a series of examples and quizzes help students to understand how their actions can affect a dealer's profit picture? Look at the effect of the discounts below. Occupancy Other Profit

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