Hardware Retailing

APR 2018

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

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Page 18 of 90

HARDWARE RETAILING | April 2018 14 NRHA News How Does Your Business Compare? I s your average transaction size normal? Do you spend more or less on advertising than other independent home improvement businesses? How does your net profit compare to average and high-profit operations? Get all of your financial questions answered by participating in the 2018 Cost of Doing Business Study. The North American Retail Hardware Association (NRHA) is now collecting data from independent hardware stores, home centers and lumberyards in the U.S. for this year's study. What is the Cost of Doing Business Study? Conducted annually for more than 100 years, the study is the independent home improvement industry's only inclusive, industry-specific benchmarking tool. Business owners can use it to compare their financial performance to industry averages in areas including sales, profits, operating expenses and more. This year's study will also include data on hot topics like health insurance, wages and employee training. How can I access the study? The only way to obtain the 2018 Cost of Doing Business Study, which is valued at $500, is to participate. The easiest way to send your data is to complete the online survey at CODB2018.nrha.org. You can also submit your financial documents via email, mail or fax. For details on the different ways to participate, visit TheRedT.com/2018-codb-participate. No matter how you choose to send in your information, your data is completely safe. All financial information is reported in aggregate. 4 Perks of Participating In addition to receiving the complete study, all participants also get the following informative elements. 1. What-If Scenarios This section provides a summary of the financial information you submitted, and you can use it to create "what-if" scenarios. For example, if you think your cost of inventory may increase by 1 percent in the coming year, you can manipulate other areas, such as decreasing payroll, to see what changes need to be made to preserve net profit. 2. Your Ratios This section includes your financial ratios along with a summary of the ratios used within the study. 3. Composite Financial Statements These pages provide financial statements for typical and high-profit stores, including your company's financial data, for comparison. 4. Strategic Profit Model This section combines the principal elements of the income statement and balance sheet in a profit-planning equation so you can compare your results to both typical and high-profit businesses. The deadline to submit your data for this year's study is June 30, 2018. Take a few minutes today to submit your information before the heat of spring selling season takes over.

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