Knowledge is power.
For more than a century, independent hardware stores, home centers and lumberyards have relied on the North American Retail Hardware Association (NRHA) Cost of Doing Business Study to see how their businesses compare to typical and high-profit operations.
By benchmarking their businesses, independent home improvement retailers can identify ways to streamline their operations and make big financial impacts.
EXTENDED: Submit Your Data Before the July 15 Deadline
You can help your business and your peers’ operations by submitting your data for the 2019 Cost of Doing Business Study. The study grows stronger with more participants, so take a few moments to submit your financial data before the July 15, 2019, deadline. Participating is free, simple, confidential and a solid way to strengthen the independent channel. NRHA holds all financial data in the strictest confidence and will never publish any individual results.
Improve Your Business With the Cost of Doing Business Study
The annual Cost of Doing Business Study is full of useful information to help your business prosper. Take a look at three ways you can use the study to strengthen your business.
- Grow your average transaction size. Average transaction size is total sales in a given period divided by total transactions for that same period. Improving this metric is one of the most direct ways to increase top-line sales. By analyzing average transaction size, you can gauge the effectiveness of new marketing campaigns, employee training and more. Learn easy ways to boost your average transaction size.
- Monitor your payroll. Payroll is a major component of every business’s financial reality. Payroll comprises owner and employee salaries, the cost of insurance and benefit plans. You can determine your payroll as a percentage of sales by dividing payroll expenses by net sales. Then, you can compare your business’s payroll expenses against typical and high-profit operations.
- Understand your gross margin return on inventory. You can determine your gross margin return on inventory (GMROI) by dividing your gross margin by your at-cost inventory value, then multiply that figure by 100. GMROI reveals how much money you earn for each dollar you invest, helping you evaluate product, category and overall inventory performance. Evaluate your GMROI to see if your business is losing money.
Take the Next Step
These metrics are just three ways the Cost of Doing Business Study can give you greater insight into your operation’s financials and help you strategize for the future. The full study (normally priced at $499) is available for free to retailers who submit their financial data. From sales per square foot, average customer count and sales per employee, the full study contains industry averages that can serve as powerful tools for every independent home improvement operator.
Submit your data now to strengthen the 2019 Cost of Doing Business Study. For participating, you’ll receive a free copy of the 2019 study and a personalized financial analysis that compares your company’s performance to industry averages. You will also get a what-if scenario generator to help you visualize how minor financial changes can bring new opportunities to your business. Hurry! The deadline to submit data has been extended to July 15.