Compare Results With Others, Kitchen and Bath Companies
Kitchen and bath dealers should be cognizant of the financial performance of similar companies in the industry, in order to determine if their business results are better than, worse than, or consistent with those of others in the marketplace.
That's the advice of the National Kitchen & Bath Association (NKBA), which has published a series of kitchen/bath dealer Performance Analysis Reports (PAR) studies. They provide companies with an opportunity to benchmark their performance in key financial areas against other firms.
According to NKBA, there are at least a dozen key areas to look
at (see table at right). By comparing your company's results with
those of both average and high-profit firms, dealers can get a
handle on not only how their company is performing, but also in
what areas they need to focus on