EVER wondered just how your retail business is going? How do others pinpoint the areas in their store which have fallen down? How do they set their standards, their goals and their budgets?
The answer is simple — benchmark.
Benchmarking is the pooling of financial data by a group of retail outlets to establish averages and make comparisons such as:
• Are you charging too much or too little?
• Is your gross profit higher or lower than theirs?
• Are you paying a comparable rent?
• Are your expenses higher than the average?
• What are your strengths?
• What are your weaknesses?
Benchmarking allows individual retail businesses to make comparisons with like businesses to find out how their business is really going.
It is a tool that allows you to determine if your gross profit is high or low, or if your expenses are too high. It shows if you are doing well or need to improve in specific areas.
Benchmarking is used by many other industries, particularly in the manufacturing sector. It is an offshoot of the Total Quality Management movement, allowing companies to measure their performance
The Retail Traders Association of WA, through the Australian Retailers Association, has joined forces with the FRMC Benchmarking Team to offer members a confidential benchmarking service.
The FRMC Benchmarking Team will provide you with your own personal report containing a comparison against averages for Key Performance Indicators and a short commentary on the main profits drivers for your retail business.
Membership information and registration forms for the new benchmarking service can be obtained by contacting the Retail Traders Association of WA on 9365-7695.
