Get More Of What You NeedWritten By: Garry Bartecki
Article Date: 03-01-2005
Copyright(C) 2008 Associated Equipment Distributors. All Rights Reserved.
Condensed CODB data will soon be available quarterly.
If getting the new Cost of Doing Business/Performance Opportunity Report (CODB) annually is beneficial, getting select data from it on a quarterly basis will be even better. AED revamped the CODB in 2004, adding more operational data along with tools to aid in profit planning. The plan all along was to make these improvements and make them even more meaningful by passing along similar data at least quarterly starting in 2005.
The quarterly data will be condensed with the intention of providing timelier trend information. Consequently, AED will concentrate on the major sales categories by sales region; comparing quarter to quarter and current year data to last year's. If possible, certain operating metrics will be included, with the goal to present the Business Segment Analysis Report available in the new CODB.
Staying aware of market activity not only among your peer brand group, but also among competitive dealers, provides dealers with the ability to adjust quickly to market conditions. Responding to market conditions preserves profits and at the same time reduces cost.
Not only will participants receive overall market data by sales region, but they will also receive an individual report comparing their results with the results of their peers in the same region. Custom reports for brand peer groups are also available for a nominal cost.
AED is also completing a project in which participating dealers can "MAP" their trial balance combinations to fit AED's CODB survey format. In other words, do it once and forget about it unless you add or delete account line items. If you do make changes to your trial balance, tell us what they are and we will make the appropriate adjustments. AED will store your MAP, collect your data on a quarterly and annual basis, and forward your data to Profit Planning Group for processing.
AED's strategic plan calls for doubling participation in the annual CODB Survey. Helping members complete the survey is one way to increase participation. Not only will we help with preparation of the survey, but we'll also MAP your account combinations and keep them on file for future use. After we MAP your trial balance, all we need you to do is send us subsequent trail balances electronically and we can automatically compile the combinations used in the CODB. Nothing could be easier.
Current CODB participants can send AED their current combination worksheets, whether they are compiled from a trial balance or from internal financial statements. These will be kept on file for future use.
AED members who participate in the annual CODB receive their individual CODB report free of charge. Members that participate in both the quarterly and annual surveys will receive the same benefit.
- Quarterly data.
- Annual data.
- Sales comparisons by quarter, year to date and year to year for the entire group and by region.
- Gross profit analysis following the same format.
- Select metrics for quarterly data.
- Significant decision-making data for modest cost.
The cost of a CODB report for non-participating members is $345. The cost to receive quarterly and annual data is $745. The entire package for non-members is $1,045.
AED is in the business to assist members with the ever-changing equipment distribution business environment. Supplying current meaningful data to make business decisions is one of the ways AED achieves this goal.
Members are urged to participate in this new program, especially those members who have not taken the time to complete the annual CODB survey.
Call us with your questions and comments.
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