How much money could you be making that is!
A story told by our friend Dean Jackson to get your attention 🙂
There’s a guy called Gamal Aziz who used to be the general manager of the MGM Grand Hotel in Las Vegas.
And Gamal is sort of a legend.
Because when he joined the hotel, the first thing he did was to look at everything they were doing. From retail, restaurants, gaming, entertainment, the spa, hotel rooms, conferences…
He looked at everything that made up their revenue and said, “How high is high? How much could we be doing here?”
For example, he looked at their flagship restaurant. It was doing $4,000,000 a year in sales. And it was profitable. No one would look at that as a problem… except Gamal.
He wondered, “How much are we NOT making?”
And so, he would stand at the entrance of the hotel night after night. He would see people coming out of the hotel, getting into cabs, and he’d ask them, “Where are you going?”
They’d say, “Well, we’re going to Spa-go,” or, “we’re going to Nobu.” They would name all these other celebrity restaurants they were going to, rather than have a meal at the hotel’s flagship restaurant…
And then, Gamal realized… Here he is, in the largest hotel in the world, but he’s losing at least $4,000,000 per year. Because he knew that … based on his observations… if they had a celebrity chef and a high-end restaurant… They could be doing $8,000,000 a year instead of just $4,000,000.
In other words, that $4,000,000 profitable restaurant was actually losing them money and nobody knew about it.
Gamal convinced the rest of the board to rip out the old restaurant and reopen it again. Same space, same location, under a different name, and with a celebrity chef Michael Mena.
And guess what? In the first year after opening… they did $11,000,000 in sales!
You see, when you have a business that’s a local business…. like a restaurant, a gym, a yoga center, and so on… even if you’re already making a profit, you could be actually losing money.
Until you’re at your full capacity and know “how high is high” for you, you’re leaving money on the table…
But here’s the thing: At the same time, one of the greatest assets that you have is all of that unused capacity. Because it comes for free.
It doesn’t cost you anything to offer a free, say, yoga class to people. In fact, that empty yoga mat when the class is running is like an unused hotel room…
As soon as that class is over, its value is nothing. And the moment that class starts, if you haven’t got someone who’s either paying to be in that class or taking that class with a potential of joining in the future… the value of that mat is also nothing. It’s a loss.
That’s why one of the most profitable things you can do is, look at the current state of your business, look at your capacity, and ask yourself, “How high is high?”
You’d be surprised at how much money you could actually be making.
Now there’s something to think about over a cocktail…
Chris and Susan
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