Benchmarking Survey Reveals How All Dealers Can Achieve High-Performer Results
Results from last year’s FEDA Financial Benchmarking Survey show that the difference between typical and high-profit distributors often comes down to how they manage the little details of their business.
By Tim O’Connor Editor and Communications Manager
H
igh-performing FEDA dealers generated more than double the profit margin of a typical foodservice equipment and supplies dealer and nearly $140,000 more sales per employee, according to the 2024 FEDA Financial Benchmarking Survey. The “typical dealer” in the report is a company that is most representative of the entire industry, with a financial performance exactly in the middle of all participating FEDA dealers. While it might be easy to attribute that gap to having a better-trained sales team or brilliant marketing plan, results from the 2024 FEDA Financial Benchmarking Survey, which uses 2023 data, shows high-performing dealers aren’t excelling in just one area. Rather, they are narrowly edging out the typical dealer in multiple key performance indicators (KPIs).
RETURN ON ASSET TRENDS
40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
36.8%
The annual FEDA Financial Benchmarking Survey collects data from FEDA dealer members to provide insights into how participants compare to other companies in the industry across several metrics, including net sales, profit margin, sales change, payroll expenses, and inventory turnover.
In 2023, the typical dealer generated sales of $29.2 million and had a profit margin of 3.9 percent, meaning they earned about 4 cents in profit for every dollar of sales. The high-profit dealer, by comparison, generated a profit margin of 8.2 percent — meaning they earned more than twice as much in profit for every dollar of sales. Looking at the comparison in Exhibit 1, it might not seem that the high-profit dealer outperformed the typical company by much, as the difference between the
24.3% 21.1% 21.9%
26.2%
12.0% 8.4% 6.1% 5.8%
11.3%
2016
2017 Typical Dealer
2018
2022
2023 High-Profit Dealer
38 FEDA News & Views
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