P.I.G. Analysis
There are a lot of analytical tools out there with clever acronyms, this one happened on accident. This answers a what we think is a simple assessment about whether there is a gap that needs to be closed in your bike shop to maintain or improve profitability.
Pigging out on data
Productivity
There are a finite number of hours in a day, and only a fraction of those see your shop open for business. When we break down profitability down to time, each hour is an opportunity to make a profit or to burn cash. How your time is spent defines your productivity.
Investment
As a retailer, you need to purchase product at an attractive enough margin in order to turn that investment back around and make a profit for your business. Plain and simple. Your ability to turn that risk into a reward is how well your investments are working for you.
Growth
How well you manage your time and turn your investments dictates how much left over profit you have for the business. Net profit is what is needed to make improvements and grow. This is to say that if you are not productive with your time and not able to turn your investments, you are unable to grow.
Using the P.I.G. Tool
The PIG tool is aimed at a gap indicator for your bike shop. With some simple inputs, you can get a decent quantifiable representation of your business in order to see if there are any obvious gaps in productivity and return on investments, then with the Scenario builder you can see what your future would look like as you make certain changes.
*The tool below features embedded pages that may be challenging to view from a small screen