Feature: Join Australia’s Biggest Hardware Store Survey
What is the net profit margin of your hardware store? If it is not at least 9.17%, then you are not matching the performance of Australia’s best hardware businesses.
Resurg Group’s annual 2005 Australian Hardware Industry Performance Benchmark Survey revealed that the average net profit of the top 25% of stores was a whopping 64% higher than the average for the whole industry, which was 5.59%.
Resurg’s benchmarking survey, which is the biggest source of information on trends in the retail hardware sector, covers stores of all sizes from less than $1 million to $10 million plus annual turnover, from the big chains to independent operators.
Last year’s survey attracted just on 250 participants and Resurg expects more than 300 to join the 2006 program, which is now open for participant registrations.
Resurg partner, Mark Jenkins, said: “This year’s survey will also measure the average dollar value per sale which, along with sales per employee and gross profit per employee, is a key indicator of the ‘China effect’ on retail hardware.”
Last year’s survey results showed that:
- Sales per full-time employee (including owners) were $272,820 across all participants and $303,533 for the top 25%.
- Gross profit per full-time employee (including owners) was $84,272 across all participants and $95,576 for the top 25%.
- Salaries and on-costs as a percentage of sales were 15.01% across all participants and 13.36% for the top 25%.
- Stores in the $4-6 million annual turnover range were struggling, recording the lowest net profit of 5.27%.
- Gross profit per square metre (selling area only) was $757 for all participants and $903 for the top 25%. The highest figure, $954, was recorded by stores with an annual turnover of more than $10 million.
- Stores with a trade rather than retail focus recorded net profit of 5.75%, sales per full-time employee (including owners) of $295,320, and gross profit per full-time employee (including owners) of $85,920.
“With retail and trade sales under pressure from rising petrol prices and interest rates and a softening of the housing market, running an efficient business becomes even more important,” Jenkins said. “Participants will be able to use their individual report to pinpoint areas where their business is not matching the industry standard or the top 25% and so focus their improvement efforts where they will have the greatest positive effect on profit. The benchmarking survey report provides a level of information rarely available to the small business owner.”
The survey measures and ranks participants across the five key areas that affect profitability: margin, stock management, people and space productivity, efficiency, and risk. Participation in the survey is open to any hardware store in Australia. All participants receive an individual, 30-plus page report showing where their store ranks against industry averages, similar-sized businesses, and the top 25% of performers. The cost to take part is $395 plus GST. For further information or to register, ring Resurg on 1300 132 138 or firstname.lastname@example.org.