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Should Your Shop Be Open Christmas Eve?

Shop Management

By Jim Piraino of Elite

This year Christmas is on a Friday, and Christmas Eve is historically not a big sales day for most, so shop owners have the opportunity to offer their staff a 4-day Christmas weekend if they close on Christmas Eve!!! Who wouldn’t want that?

However, to close and lose a day’s business, plus the burden of paying the staff, is expensive. So here’s a plan that should allow your staff to rule their own destiny – Hit the goal and they get an extra paid day off without costing the shop a dime; miss the goal and its business as usual on Christmas Eve.

December has 22 workdays, not counting Christmas Day. SO if your sales goal for December is $75K, and you divide by 22 work days, you will need about $3409 per day to hit the goal. IF you close on Christmas Eve you will lose $3409, so you must spread that would-be-lost $3409 out over the remaining 21 days by generating an extra $162.33 per day in December ($3409/21=$162.33), which raises the daily goal to $3571.33 ($3409 + $162.33).

However, you must pay your staff for the day off, so you need to take an average day’s wages, divide by 21, and add that number to the new daily sales goal as well. For example, if in an average day you pay $1500 in wages, divide that number by 21, and add the $71.43 ($1500/21) to the daily goal to bring it up to $3642.76 ($3409 + $162.33 + $71.43). When this daily goal is multiplied by 21, it gives us an adjusted monthly goal of about $76,500 in round numbers.

Please keep in mind that you cannot start this program on December 1st because it needs to be accomplished no later than December 18th. This will enable your shop to schedule cars on the 24th should you fail to meet your goal. I suggest you back up 21 work days from December 18th, which would put the goal start date on November 18th if your shop will be closed the day after Thanksgiving, and would put the goal start date on November 19th if your shop will be open the day after Thanksgiving. I would also strongly suggest that you let your staff know on a daily basis how they are doing, although the daily performance doesn’t matter as long as the total of $76,500 is reached by 12/18.

This tip was provided by Jim Piraino. Jim previously owned one of the most successful shops in the country, and is now one of the 1-on-1 coaches who helps shop owners through the Elite Coaching Program.

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