Andy Neary shows how a 10% jump in health insurance costs hits your bottom line like losing $4 million in sales. He breaks down a $2 million budget increase and offers a three-step plan to claw that money back.
Chapters
Welcome back to striking out the status quo. Your health plan is just one mindset shift away from greatness. Alright, this week I'm going to apply to be your top salesman and I'm going to show you how I'm going to do that by using your health insurance budget.
I think we can agree today the.
Conversation around health insurance has become a financial conversation. Right now you're out there looking at.
A budget that's the second or third.
Largest expense you have.
So.
So yes, it has become a financial conversation. And let me show you the impact health insurance is having on your bottom line. Right now you're looking at your P and L statement, a rough copy of your P and L statement.
At the top you've got sales, right? You've got gross revenue.
After that you're taking out your cost.
Of goods sold to create your operating profit.
Underneath operating profit, the next thing that comes out is SG and A. And that's where your health insurance budget lies. Now if you had a $2 million health insurance budget and you let it go up 10% like most employers are doing right now, that's $200,000 that you're taking away from your bottom line. Now if your Profit margin is 5%, that's an additional $4 million you have.
To sell to offset the increase in.
Your health insurance costs.
But let's look at the flip side. What if you could take that 2.
Million dollar budget and take $200,000 out of it, save 10%, that's $200,000 you're putting back on your bottom line. And at a 5% profit margin, that's like adding $4 million of sales to your top line.
If I could help you do that, I just became your top salesman.
Now here's how you can do this.
If you click the link below, I.
Have a white paper I want to give you. I have a plan to give you.
Called Review, Reduce, Reallocate.
You need to review your plan to.
See what opportunities you have to reduce your cost so you can then reallocate those savings to lower out of pocket.
Cost and lower premium contributions for your employees. And I want to help you do that. So download that today. Let me know if you have any questions. And until next time, bear down, focus on the target and strike out the status quo.
