Number$ to Know
As you look to grow your business, it's imperative to know what certain numbers mean—and how they can impact the bottom line. According to Paint and Decorating Retailers' "Cost of Doing Business," knowing these numbers can help you identify new financial opportunities and maximize existing ones:
Sales per square foot – a classic measurement; knowing this can help gauge your store's productivity. The sales per square foot for a typical paint store is $755
Inventory per square foot – stores that stock more inventory per square foot typically generate higher sales. However, having an overly cluttered and disorganized store can also present a disadvantage. Make sure everything is clearly marked and organized in a way that's intuitive to customers. The inventory per square foot for a typical paint store is $99
Sales per employee – know how much your people are selling and if they are meeting their quotas. Note that two part-time employees should equal the sales of one full time.
Sales per customer – Knowing your average sale per transaction can help you gauge the performance of merchandising and sales staff. The sales per customer for a typical store is $106
Profit before taxes – Know exactly how much profit you are making each month so you can measure the financial health of your operation. The profit before taxes for a typical pain store is 8%.
They say, the more you know, the better you can plan—and we can't agree more!