Hardware Retailing

JUN 2018

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

Issue link: https://hardwareretailing.epubxp.com/i/985610

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Page 19 of 82

June 2018 | HARDWARE RETAILING 15 W hen 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 NRHA's 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 at TheRedT.com/codb. 5 Financial Points You Should Be Watching 1 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. 2 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. 3 Payroll 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? 4 What-If Scenarios 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. 5 Hot Topics 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. Protection from the inside out 1-888-363-2628 marketing@seal-once.com BECOME AN EXCLUSIVE DEALER TODAY SUPERIOR PROTECTION AGAINST WATER, MOLD, & DECAY ECO FRIENDLY AND EFFECTIVE. SEAL-ONCE® NANO-GUARD™ has zero VOCs, it's safe to use around people, plants, & animals, and it cleans up with soap and water. Protection lasts up to 10 years on vertical surfaces. © 2018 SEAL-ONCE is a registered trademark of U-C COATINGS, LLC BUFFALO, NY

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