financial benchmarking - … · benchmarking is a way of discovering what is the best performance...
TRANSCRIPT
Benchmarking is a way of discovering what is the best performance being achieved within a single industry. This benchmark illustrates the “what” and “how” of HME retailers in your industry that make a company’s operations lean, improve quality and productivity, and lead to superior performance.
FINANCIAL BENCHMARKING
FINANCIAL
Total revenue
- ExpensesCost of
goods sold
Operating expenses
= Net income
Net margin %$
$$
$MARKETING/ADVERTISING
Beginning-of-period revenue
- End-of-period revenue
Return on marketing investment %
$
$$
= Change in revenue
- Total marketing investment during period $
$= Answer
$ Total marketing investment during period
DAILY TRACKING
Total Sales
= Average Sale per Transaction $
#$
Total Number of Transactions
Total products sold
= Average number of product sold per transaction
$
#$
Total Number of Transactions
TOP THREE FINANCIAL BENCHMARKS TO REVIEW REGULARLY1. Average Daily Revenue
2. Average Daily Ticket
3. Average Number of Daily Transaction
ARE YOU ADDING INCREMENTAL SALES WITH EVERY PURCHASE?
855-285-3300 | www.vgmretailservices.com | [email protected]
MAIN PRODUCT
ADD-ON PRODUCT #1
Retail price $x Yearly Repeat Purchases per Customer= Yearly Sales per Customer $
Retail price $x Yearly Repeat Purchases per Customer= Yearly Sales per Customer $
Retail price $x Yearly Repeat Purchases per Customer= Yearly Sales per Customer $
YEARLY SALES PER CUSTOMERProduct 1 $Product 2 $Product 3 $
TOTAL YEARLY SALESPER CUSTOMER $
Total Yearly Sales per Customer $ x Average Markup %= Yearly Profit per Customer $
ADD-ON PRODUCT #2
ADD-ON PRODUCT #3
Yearly Profit $x Total Customers
= Additional Yearly Revenue $
ARE YOU ADDING INCREMENTAL SALES WITH EVERY PURCHASE?
855-285-3300 | www.vgmretailservices.com | [email protected]
E0260HOSPITAL BED
45% Average Reimbursement
Reduction
PLUSH BED PAD
Retail price $50x Yearly Repeat Purchases per Customer 2= Yearly Sales per Customer $100
BED SHEETS
Retail price $56x Yearly Repeat Purchases per Customer 2= Yearly Sales per Customer $112
Retail price $150x Yearly Repeat Purchases per Customer 1= Yearly Sales per Customer $150
OVER-BED TABLE
YEARLY SALES PER CUSTOMERBed pad $100Bed sheets $112Table $150
TOTAL YEARLY SALES PER CUSTOMER $362
Total Yearly Sales per Customer $362x Average Markup 50%= Yearly Profit per Customer $181
Yearly Profit $181x Total Customers 520
= Additional Yearly Revenue $94,120
Vend
orPi
llows
Shee
tsM
attre
ss
Pads
Mat
tress
Pr
otec
tors
Over
-bed
Ta
ble
Bed
Rails
Soun
d M
achi
nes
Slee
p M
ask
Reac
her/
Dres
sing
St
ick
Skin
care
Pain
Cr
eam
sTr
ansp
ort
Chai
r
Cont
our
cont
ourp
rodu
cts.
com
X
Core
Pro
duct
sco
repr
oduc
ts.c
omX
Com
pass
Hea
lthro
scoe
med
ical
.com
XX
X
Spec
tra M
edic
alsp
ectra
med
icald
istrib
utio
n.co
mX
XX
GF H
ealth
Pro
duct
sgr
aham
field
.com
XX
XX
XX
Med
line
med
linep
lace
.com
XX
XX
XX
XX
X
McK
esso
nm
ckes
son.
com
XX
XX
XX
XX
Topr
icin
topr
icin
.com
XX
Soun
d Oa
sis
soun
doas
is.c
omX
The
Help
ing
Hand
Co.
help
ingh
andu
s.co
mX
Jane
Inc.
jane
incp
rodu
cts.
com
X
Sunr
ise
Med
ical
sunr
isem
edic
al.c
omX
Med
troni
cm
edtro
nic.
com
X
Perfo
rman
ce H
ealth
perfo
rman
cehe
alth
.com
XX
XX
XX
X
Firs
t Cho
ice
Med
ical
fcm
s.co
mX
XX
XX
XX
XX
Lake
Cou
rt M
edic
alla
keco
urt.c
omX
XX
XX
XX
XX
X
Inde
pend
ence
Med
ical
inde
med
.com
XX
X X
XX
XX
XX
Com
plet
e yo
ur p
rodu
ct m
ix w
ith th
ese
incr
emen
tal r
etai
l pro
duct
s fro
m o
ur V
GM c
ontra
cted
ven
dors
.
Cont
act u
s tod
ay to
lear
n m
ore
abou
t the
se V
GM ve
ndor
s and
incr
emen
tal r
etai
l sto
res.
855-
285-
3300
| w
ww.v
gmre
tails
ervi
ces.
com
| re
tails
ervi
ces@
vgm
.com
ARE YOU ADDING INCREMENTAL SALES WITH EVERY PURCHASE?
Retail price $63x Yearly Repeat Purchases per Customer 2= Yearly Sales per Customer $126
Retail price $15x Yearly Repeat Purchases per Customer 2= Yearly Sales per Customer $30
Retail price $8x Yearly Repeat Purchases per Customer 6= Yearly Sales per Customer $48
E0601CPAP DEVICE
54% Average Reimbursement
Reduction
CPAP PILLOW
CPAP PILLOW
CASE
CPAP WIPES
855-285-3300 | www.vgmretailservices.com | [email protected]
YEARLY SALES PER CUSTOMERPillows $126Pillow Case $30Wipes $48TOTAL YEARLY SALES PER CUSTOMER $204
Total Yearly Sales per Customer $204x Average Markup 50%= Yearly Profit per Customer $102
Yearly Profit $102x Total Customers 2,000
= Additional Yearly Revenue $204,000
Vendor Pillows Wipes HoldersTravel/
Portable Machines
Hose Covers Batteries Cleaner/
SanitizerMask Liners
CarryingCase
Philips Respironicsrespironics.com X X
Medlinemedlineplace.com X X
McKessonmckesson.com X X X
Independence Medicalindemed.com X X X
Compass Healthroscoemedical.com X X X X X X
Transcendmytranscend.com X
Better Rest Solutions - So Clean
betterrestsolutions.comX
Contourcontourproducts.com X X X
Core Productscoreproducts.com X
Battery Power Solutionsbatterypowersolutions.net X
First Choice Medicalfcms.com X X X
Mada Medicalmadamedical.com X
Attentus Medicalattentusmedical.com X
Lake Court Medicallakecourt.com X X X X
Below are other add-on products available in the CPAP category and the VGM contracted vendors that supply them.
Contact us today to learn more about these VGM vendors and incremental retail stores.
855-285-3300 | www.vgmretailservices.com | [email protected]
855-285-3300 | www.vgmretailservices.com | [email protected]
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Other: _______________________________________________________________________________________________________________
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VGM RETAIL ROADSHOW