The deadline for the North American Hardware and Paint Association (NHPA)’s 2021 Cost of Doing Business Study has been extended to July 15. The study is the only inclusive industry benchmarking study that gives you a complete analysis of how your business performed against other independent paint and home improvement operations in 2020.
Each year, this financial benchmarking tool delivers data and insights that allow retailers to increase profits and strategize for their financial future and success. It’s free, easy and completely confidential to participate.
“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 video with Gowan to learn what you can gain by participating in the Cost of Doing Business Study.
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.
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.
- Complete the Cost of Doing Business Study online survey.
- Email your company information and 2020 year-end financial statements to NHPA chief financial officer David Gowan at dgowan@yournhpa.org.
- 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.
- 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.
3 Reasons Why You Should Participate
1). You’ll receive a free copy of the study’s results ($499 value).
For your participation in the study, you’ll receive a free copy of the 2021 study along with a personalized financial analysis of your company’s financial results compared to industry averages.
2). Participating in the Cost of Doing Business Study can help you benchmark your business.
Your personalized financial analysis includes composite financial statements, your ratios, what-if scenarios and a strategic profit model. The what-if scenario generator can help you calculate how small changes make a big impact. Identify new financial opportunities for your business by using the study’s financial metrics to:
- Determine ways to reduce costs and increase profits.
- Identify ways to improve average transaction size and reduce payroll dollars.
- Evaluate gross margin return on investment.
3). Your submission helps other retailers like you.
As independent retailers, we are stronger together, and the Cost of Doing Business Study is no exception. The more retailers who participate, the stronger the study results.
Visit YourNHPA.org/codb for more information or to get started.
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.
Sales Per Square Foot
This classic measurement remains one of the most important gauges of a store’s productivity.
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 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 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 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 paint store is 3.1 percent.
Source: NHPA’s 2020 Cost of Doing Business Study.
Learn more at YourNHPA.org/codb.
