FINANCIAL BENCHMARKING - … · Benchmarking is a way of discovering what is the best performance...

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 $



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 $



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



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

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E0601CPAP DEVICE

54% Average Reimbursement

Reduction

CPAP PILLOW

CPAP PILLOW

CASE

CPAP WIPES


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.



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Please explain: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Please explain: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. What topics or materials would you like to see improved upon or added to future Retail Roadshows?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. How did you hear about today’s Roadshow event?Email VGM Connect Newsletter VGM Rep. Vendor Rep. Postcard Social Media Blog

Other: _______________________________________________________________________________________________________________

5. What is the best way to inform you of future Retail events and educational sessions?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. Please provide any additional comments, concerns, or suggestions below:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Thank you for your feedback. We hope to see you again soon!

VGM RETAIL ROADSHOW

FINANCIAL BENCHMARKING - … · Benchmarking is a way of discovering what is the best performance...

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Transcript of FINANCIAL BENCHMARKING - … · Benchmarking is a way of discovering what is the best performance...