How Do You Measure Up to Competitors?
There’s Just One Way to Be Certain
CED Magazine, March 2010
Article Date: 03-01-2010
Copyright(C) 2010 Associated Equipment Distributors. All Rights Reserved.
A custom Profit Improvement Profile is complimentary when you
complete AED’s 2010 Cost of Doing Business Survey.
The survey stares at you and you know it should be completed, but it takes time – about an hour and a half, according to AED’s Vice President of Finance Gary Bartecki. This year, make a point to keep the AED Cost of Doing Business Survey near the top of your priority list, because you will be hard pressed to find a greater return on your time investment.
AED e-mailed out the CODB questionnaires in mid-February to all dealer member companies, who are strongly encouraged to take advantage of the opportunity to obtain valuable data – free to those who participate. The report gives dealers a clear picture of where they stand compared to their competition. It is the only completely independent financial analysis of the dealer market – in essence, a report card for the dealer’s business.
“It’s a really good report that will help you make some decisions,” said Bartecki. “It’s a metric that encompasses all different types of dealers and it doesn’t focus on one type or one manufacturer. Everybody wants to see how they are doing against everybody, not just their dealer group.”
The Profit Improvement Profile is Your Personal Report Card
For completing the survey, AED will not only provide the member business with a free copy of the Cost of Doing Business publication (a $395 value), but also a custom Profit Improvement Profile (PIP). The PIP offers a line-by-line analysis of your performance on approximately 30 critical profit variables. It will also suggest moves to strengthen your financial position.
“It’s one thing to go into your banker and tell them that everyone in the industry is hurting,” said Bartecki. “But with the PIP profile, you can provide a third-party analysis that shows your bankers and auditors how you compare with other dealers.”
Your Data is Completely Confidential
Dealers can rest assured that their results are completely confidential. Only the independent organization that compiles the data, Profit Planning Group, will have access to your data. Your firm’s identity is separated from your firm’s data and identified only with a code number. Reports present only aggregated results and strict data masking procedures are used to ensure that no individual firm’s results are identified. As an additional security measure, forms are destroyed after processing. No other association member or AED staff member will have access to your data. Traditionally, more than 150 AED dealers participate in the survey, making this one of the most valuable evaluation tools available to AED members.
How to Complete the Survey
Dealers should have received an e-mail with a link to the Profit Planning Group Web site (www.aednet.org/codb) where they can download the survey. After completing the operational questions, balance sheet and income statement, e-mail the electronic file directly to Profit Planning Group before May 15.
“Many software vendors will now compile the input sheet for you,” said Bartecki. However, if dealers have any questions or need assistance, he welcomes phone calls at (630) 574-0650, ext. 323.
New AED Officer Announced
AED Chairman Denny Vander Molen and AED President and CEO Toby Mack have announced the appointment of Michael D. Brennan to the association’s Officers roster. Brennan, who is executive vice president and CFO of Bramco, Lousiville, Ky., has been named Vice President of Finance. Brennan served as an AED Director from 2006-2008, and was a member of the Annual Meeting Committee in 2003 and 2004. AED thanks Dennis Romanson for his service as Vice President of Finance since October 2007.
Joining the Finance Committee are current AED directors: Craig Burkert (ROMCO), Jerry Tracey (Tracey Road Equipment) and Mike Soley Jr. (Miller-Bradford & Risberg). AED Director Tim Watters (Hoffman Equipment Co.) continues to serve on the committee, as well.
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