![]() ![]() industry comprises establishments primarily engaged in (1) retailing new and/or used boats or retailing new boats in combination with activities, such as repair services and selling replacement parts and accessories, and/or (2) retailing new and/or. Looking outside the walls of your retail business will help you to gain internal knowledge that can and will lead to improvements in your businesses' bottom line results. Benchmarks / Motor Vehicles, Parts Dealers / Boat Dealers. Setting up a benchmarking process for measuring your business effectiveness can help insure the long-term success. Unless you measure against your own industry standards, you won't measure your business within the right industry context.) (Note: When gathering comparative benchmarking data, choose the industry figures that best fit your company descriptions. Some possible benchmarks for your business to focus on include: Determining which benchmarks to measure should align with your strategic and operational goals for the business and be appropriate for current stage of your business life cycle. Understanding that benchmarks can measure both internal and external company effectiveness, the next step in setting up a benchmarking practice for your retail business will be to determine what you want to measure. Recognizing any cost savings that can be achieved or reductions in overhead that are necessary will help improve your overall expenses and improve bottom line profits. Benchmarks can help you determine if your investments in non-sales generating overhead are appropriate for a business of your size. Spending money on marketing activity is critical to your businesses' long term success, so understanding the return on investment you should expect can give you performance metrics to achieve. Using benchmarks to measure the investment in marketing for your retail business can determine if you are achieving the appropriate level of incremental sales and profit with your marketing dollars. Utilizing measurements for like industry businesses can showcase any room for improvement your business can make. Determining how effective your merchandise assortments are and measuring turnover performance will help maximize your gross profit to it's fullest potential. Using sales is an obvious measurement tool, but understanding how other retail businesses are performing versus yours can provide some future goals that your business can reach for. Sales Effectiveness.By measuring sales, you can determine if your retail business is achieving it's optimal level of sales on a daily, weekly, monthly or annual basis. But the question remains, what value can be added to your retail business by benchmarking your performance against other like retail businesses? Here we suggest 4 areas where your retail business can be improved and made more effective from the use of benchmarks. We have previously suggested that benchmarking can help give retailers the unique perspective they need to improve their overall performance. As retailers, we're always striving to do better. ![]()
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