How can I use sales targets to budget?


If your business requires a flexible workforce and therefore a roster that expands and contracts based on revenue, budgeting based on sales targets may be the most effective method. This is style of roster budgeting is common practice for businesses in industries such as hospitality and retail where seasonal and daily sales can fluctuate significantly and business owners need to adjust rosters and labour costs regularly to remain profitable. So how exactly, does using sales targets to budget work? The process involves you predicting, before you publish a roster, the daily sales target for the week and then letting RosterElf auto calculate the labour cost as a percentage of sales. Example: If you forecast sales on Monday of $3,800 and have a total estimated cost on the roster for that day of $1,300, your labour percentage would be 34.2% ($1300 / $3800).


Daily view - sales targets


In the Daily View, when a particular day is selected, you will notice a sales target bar when you can enter the forecasted revenue for that day. Then, as you add and adjust shifts in this view, you will notice RosterElf will automatically calculate and present your labour percentage for each day and the week.


Weekly view - sales targets


In a similar way, sales targets can be entered in the Weekly View.

Note: Sales targets needed to be entered by site and you will be unable to enter when viewing and rostering all sites combined.