Benchmarking has been rated as the number 1 priority by members. In order to assist members to assess their own bookshop performance and identify areas of growth, the ABA is developing a benchmarking service in conjunction with the expertise of Australian Retails Services, to be launched in 2008. The Benchmarking for Bookshops service will assist members to understand the performance fundamentals of their business, and also to enable a cumulative profile of data to be collated to allow relevant comparisons within the book trade.
The ABA's Benchmarking Service is relevant for all bookshops and types of ownerships: independent, franchised, chain, campus and specialist.
The aim of the Benchmarking Service is two-fold:
help booksellers learn about their business from their point of sale and inventory management software reports;
to allow booksellers to compare their performance against businesses of a similar size. In short, a financial health-check.
Booksellers tell us they want to be able to drill down into their own finances to improve their profitability and to assist planning, and they want to know how their financial operation compares with those of their peers.
The ABA's Benchmarking Service will be comprised of three parts, all of which may be accessed independently.
The three parts are:
Part 1
Converting browsers into buyers – the basic steps to start tracking the rate of conversion of shop browsers into customers in your book shop.
Part 2
Benchmarking report - compares your P&L data with the FMRC Benchmarking database compiled by accountants. The database is divided into individual retail sectors, including book shops, and is the benchmark against which comparisons are made.
Part 3
Tailored financial report - this comprehensive report includes all of Part 2, with the added benefit of tailored advice and recommendations for your business by a retail and accounting expert from Australian Retail Services. This report analyses your data, identifies opportunities to increase profit, identifies gaps in performance and makes recommendations to increase your financial returns.
