Have you benchmarked your business? The deadline to participate in the 2021 Cost of Doing Business Study is Wednesday, June 30.
For more than a century, NHPA has collected information from independent home improvement retailers for the study. Each year, this financial benchmarking tool helps retailers understand how their businesses compare financially to typical and high-profit operations so they can make informed decisions for their operations.
“Participation in the Cost of Doing Business Study gives you access to data for typical and high-performing operations in the industry so you can benchmark your performance,” says David Gowan, NHPA chief financial officer and executive vice president of business services. “It allows you to make informed decisions to better position your operation for years to come.”
Watch the above video to learn what you can gain by participating in the Cost of Doing Business Study.
How You Can Participate
You can choose from several easy ways to share your information with NHPA: via mail, email or online. Participants receive free access to the study’s results and a personalized financial analysis of your business. The information you provide is completely confidential. Click here to get started.
What You Get for Participating
When you participate in the 2021 Cost of Doing Business Study, you’ll receive the following tools and information for free.
- A free copy of the study ($499 value).
- A personalized financial analysis with your company’s financial results compared to industry averages.
- A what-if scenario generator to calculate how small changes can make a big impact.
- Your company’s financial ratios and other financial metrics.
Numbers You Should Know
The Cost of Doing Business Study can help you identify new financial opportunities for your operation. Have you looked at your financials recently? Here are some numbers you should know.
This classic measurement remains one of the most important gauges of a store’s productivity.
The sales per square foot for a typical hardware store is $189.
The sales per square foot for a typical paint store is $381.
Inventory Per Square Foot
Stores that stock more inventory per square foot typically generate higher sales.
The inventory per square foot for a typical hardware store is $49.
The inventory per square foot for a typical paint store is $77.
Sales Per Employee
In calculating this ratio, two part-time employees are considered equivalent to one full-time employee.
The sales per employee for a typical hardware store is $160,560.
The sales per employee for a typical paint store is $169,225.
Sales Per Customer
By measuring the average sale per transaction, retailers can gauge the performance of merchandising and sales staff.
The sales per customer for a typical hardware store is $24.
The sales per customer for a typical paint store is $135.
Profit Before Taxes
This figure represents the money you put in your pocket every month and provides a way to measure the health of your operation.
The profit before taxes for a typical hardware store is 4 percent.
The profit before taxes for a typical paint store is 3.1 percent.
Source: NHPA’s 2020 Cost of Doing Business Study.
Participate in the 2021 Cost of Doing Business Study Now
Choose from four easy ways to participate confidentially in the 2021 Cost of Doing Business Study.
1. Complete the Cost of Doing Business Study online survey.
2. Email your company information and 2020 year-end financial statements to NHPA chief financial officer David Gowan at email@example.com.
3. Fill out the company information section of the survey and attach a copy of your 2020 year-end financial statements and mail them to NHPA.
4. Complete and mail or email the entire survey.
Please note that individual financial data is held in strict confidentiality, and financial and operational data will only be published in aggregate.