When it comes to the financial side of your business, are you paying close attention to the metrics that have a large impact on your bottom line?
Below are five ways participating in the North American Retail Hardware Association’s (NRHA) annual Cost of Doing Business Study can help you accurately evaluate your business. The only way to access the study (valued at $499) and its accompanying resources for free is to participate by June 30.
Average Transaction Size
The 2017 Cost of Doing Business Study shows that the average transaction size at a high-profit hardware store is $30 and $22 at an average store. It’s time to evaluate ways to increase transaction size at your business.
Net Profit Before Taxes
Last year, net profit at a high-profit hardware store was 10.4 percent, while at an average store it was 4.2 percent. Determine how you can make adjustments to hit a similar net profit before taxes this year.
Payroll expenses make up 22.2 percent of annual income at a high-profit hardware store, while average stores dedicate 20.2 percent to payroll. Are there ways you could be more effective with your payroll dollars?
Participants receive a tool to help them think through financial scenarios. For example, if you think your cost of inventory may increase by 1 percent, you can manipulate other areas to see what changes need to be made.
Do you wonder what other retailers spend on expenses like health insurance, employee training and wages? The 2018 Cost of Doing Business Study will report data on these hot topics and more.
Participate in the 2018 Study
Don’t miss your chance! The deadline to participate in the 2018 Cost of Doing Business Study is June 30. For more information and to take five minutes to complete the survey today, click here.