Paramount International News (1932)

Pago 3 1932 PROFIT DRIVE! Contest Is Based on Net Profit, not Gross Business You Must Sell Efficiently and Operate Economically Quotas Figured in Local Currency — Goal 100 Points rPHE headlines tell the whole J story ! The 1932 profit drive is designed to reveal who among you are the profitproducers. The job of the Foreign Legion during the next twelve months is to return to our company the biggest net profit on all phases of operation that come within the supervision of our foreign offices. Your executives want to know, not which divisions are rolling up the largest volume of business, but which divisions are actually making the most money for Paramount. In other words, quota is no longer a question of gross revenue, but a matter of net earnings, that is to say, profit. The 1932 profit drive marks a deliberate reversal of the policy pursued in previous years. Heretofore you were rated solely by your total income from film rentals and ad sales. The more you sold, the higher you ranked. Selling was the only yardstick. This year you will be judged by the net profit you show. That means, besides selling as intelligently and as intensively as ever, you must operate as efficiently and as economically as possible, for net profit is the difference between gross revenue and operating costs. The more you increase your sales and decrease your expenses, the bigger will be your net profit. The 1932 profit drtve offers the Foreign Legion a bold challenge and a great opportunity. It is a challenge to your pride, fighting spirit and ability! It is an opportunity to show the stuff you’re made of — to prove that you can deliver a profit when put to the crucial test ! Now for the actual details of the contest. The drive has been divided into four quarters, and quotas will be figured in local currency, not in dollars. That removes the handicap of a falling rate of exchange, and equalizes the chance of winning for every office. The method for determining the winning divisions — the profitproducers, — is a simple one. Every office will receive a quota figured, not on a percentage basis, but on a point system. 100 points is the goal, divided as follows : 60 points for gross revenue ; 25 points for local operatingcosts ; 15 points for print costs, including duties, shipping, etc. At the end of each month you cable us your gross figures (for film rentals and ad sales) and your operating cost, to which we add print cost. We then deduct the total operating and print costs from your gross revenue. The remainder is your net profit. You can get more than 100 points by increasing your revenue or decreasing your expenses. Suppose your revenue quota is 1,000 francs, and you do 1,500 francs worth of business. That’s a fifty percent increase. So instead of 60 points, you would be credited with 90 points. On the other hand, if your average monthly operating cost is 200 francs, and thru rigid economy, you decrease it to 160 francs, effecting a twenty percent saving, you would be entitled to 30 points instead of 25 points. To show a profit, the total number of points you are credited with in revenue, operating and print costs must equal 100 or more. Backed by the finest line-up of Paramount profit pictures you have had in many seasons, you legionnaires have a rare opportunity this year to do a great job for yourselves, your company and your customers. Sell with all your heart and soul and mind ! Spend as carefully as if it were your own money ! You can deliver a profit — and you will — Because you’ve got the product, the merchandising skill, and the guts ! You Will Be Judged 9 From GROSS REVENUE (film rentals and ad sales) 60 points Deduct OPERATING COST (expenses for your territory) 25 points Also PRINT COST (as well as duties, etc.) 15 points Leaving NET PROFIT 100 points • By PROFIT You Make