Arlington, Va. — The Consumer Electronics Association (CEA), in conjunction with the Professional Audio/Video Retailers Association (PARA, a division of CEA), the North American Retail Dealers Association (NARDA), and co-sponsor GE Retail Sales Finance (GECAF), has released a cost of doing business study.
The study provides comparative information that dealers can use to assess the financial health of their businesses, identify strengths and areas that need improvement, and develop strategies for growth.
The study was conducted among a sample of U.S. appliance dealers, consumer electronics dealers, service dealers, and dealers with mixed sales. The research focused on benchmarking key income statement and balance sheet metrics. The results provide a clear picture of dealer profitability, liquidity, operations management, and balance sheet management.
The results also show the average participant reported a gross profit margin of nearly 32 percent. In contrast, high profit dealers, those in the upper quartile, reported a gross profit margin of about 36 percent. Moreover, high profit dealers succeed with fewer employee hours, suggesting a combination of possibly higher employee productivity or a different business model.
“In today’s highly competitive marketplace, education and information are essential elements for business success,” stated Gary Yacoubian, president of MyerEmco AudioVideo, a PARA member. Added Tom Drake, NARDA’s president/CEO, “Understanding and using the data in this report is one of the most important things dealers can do to ensure their business continues to prosper and grow.”
“Cost of Doing Business Report” is available free to all survey participants; to PARA and NARDA members for $250; and to nonmembers for $299. To order the report, contact CEA’s PARA Division at (703) 907-7655 or NARDA at ( 800) 621-0298.