Over the past 5 years there has been nothing steady when it comes to the business levels for dealers selling outdoor power equipment (OPE). They’ve witnessed a swing in annual revenues of 31% on average between 2012-16 ($3.32 million vs. $4.34 million). But this wasn’t the worst of it. Between 2013-15 alone, total revenues, on average, fluctuated by more than half ($2.85 million vs. $4.34 million).
Fortunately, dealers have seen some growth during the past 2 years, according to the Cost of Doing Business Studies conducted by the United Equipment Dealers Assn. (UEDA). Their numbers show that after 2 years of declining revenues in 2012 and 2013 ($2.9 million and $2.8 million, respectively), revenues on average increased to $3.3 million in 2014 and $4.3 million in 2015.
This data is from the UEDA's Cost of Doing Business Study. The study presents composite income statements and balance sheets in addition to averages for key financial performance ratios. The study provides valuable “insider” data, direct from dealers that you can use to gauge your dealership’s own performance.
To help you get the most from these numbers during this busy season, our team will be breaking down the study into a series of “Measuring Up” quick-read articles.
And, to make sure we’re all clear on how the metrics are defined, please refer to and download these definitions here:
This document outlines the formulas behind key financial measurements and is a good document to share with your entire management team.
Let's dig into the numbers! Chapter One begins on the next page, and we will be rolling out the remaining five chapters over the course of the summer.
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