Cost of Doing Business Study 2014-15

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Cost of Doing Business Study 2014-15

The National Bicycle Dealers Association has released its newest financial study of specialty bicycle dealerships in the United States; the ninth research is done every two years. Specialty bicycle retailers were surveyed in early 2014, with most answering based on the full 2013 calendar year.

This unique research effort for bicycle shops represents the most up-to-date comparative financial performance information available anywhere. This study is designed to serve as an easy-to-understand tool for industry retailers to evaluate their own company’s operating results to pinpoint strengths, weaknesses, and improvement opportunities.

During the first quarter of 2014, the National Bicycle Dealers Association mailed a strictly confidential survey questionnaire to all NBDA member stores and a random sample of non-member stores.

The survey collected detailed financial and operating information from industry operators by sales revenue size, store type, geographic region, and several locations.

The NBDA Cost of Doing Business Survey was compiled, tabulated, and prepared by Industry Insights, Inc., headquartered in Columbus, Ohio, a professional research and consulting firm which specializes in industry operating surveys, compensation studies, education programs, and customized research services. Completed questionnaires were returned in strictest confidence through early April, to Industry Insights, Inc. In all, 122 bicycle retailing firms responded to the survey, providing completed and usable questionnaires to Industry Insights for processing. All company identification was removed from each poll, and only a secret identification code remained. The data was then coded, keyed, and edited by Industry Insights’ financial analysts for validity. Computer processing was performed on all data to ensure statistical validity and to produce the financial and operating ratios contained in this study.

A Financial Study Specialty Bicycle Retail

Using this information, bicycle retailers can compare their figures with other firms in their revenue category. Retailers can compare to other single or multi-store operators, with stores of similar size, with stores of a particular geographic region, and with the high-profit firms (i.e., those in the upper 25% based on before-tax return on assets). Spotting significant differences between your own store’s performance and the industry composites can be the first step toward improving performance. However, deviations from industry norms do not automatically call for some action.

To use this report, determine which of the above data groups pertain to your operation to compare your own store’s results to retailers that are comparable to your own. Be concerned only with those sections of the report that are relevant to your business.

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Cost of Doing Business Study 2014-15

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