Is Time On Your Side?

Anybody thinking of a Stones song?

I digress.

Very early in my career I was presenting the ROI of our original T-Trax product to a prospective customer, showing the time savings our solution could achieve for their route salespeople. A dollar amount was then calculated as the annual savings. The customer then turned to me and said “You know, those aren’t REAL dollars”. Being inexperienced, I conceded. Looking back, there are multiple arguments as to why he was wrong.



The inputs are:

  • 30 seconds per stop
  • 12 stops per day
  • $40k per year compensation

The results are:

  • 6 minutes per day
  • 126 minutes per month
  • 25 hours per year
  • $500 per year per route
  • $0.33 cost per second

Argument 1 – Scale

If time savings were 4 minutes per stop, would 200 hours/$4000 per year be “Real”. It is even more dramatic when extended over 50 routes: 10,000 hours / $200,000.

Argument 2 – Attrition

Each employee will notice that their working day is 5-10 minutes shorter. This is a bonus that may prevent  attrition costs that can be very expensive.

Argument 3 – Usage

This is the most persuasive argument. What will you do with the extra time? Add end-of-day inventory count to reduce shrinkage? Spend more time with customer relationships? Cultivate new accounts? The list goes on.

Bottom Line – Time On your Side

Any time savings is only worth what you do with it. Be it 1 minute or 1 hour. Just because you do not know what to do with it, time savings are always a benefit and should be sought with a vigor proportional to the cost.