A typical trailer dealer produced a pre-tax profit of $227,694 in 2004. In contrast, a high-profit dealer generated a pre-tax profit of $535,376 during the same period, giving it an annual profit advantage of $307,682. This performance gap between the typical and high-profit firm is analyzed in the recently released National Trailer Dealers Association (NTDA) 2005 Dealer Profit Report.
The report features the financial data of 47 NTDA members — a jump of about one-third from 32 participants a year ago.
Intelligence gained from the report is used by NTDA member companies in several ways. As a benchmarking tool, the results provide participants with data to compare their success to similar-size dealers in various geographic areas. As a planning resource, the report is useful in helping participants plan their annual goals. Besides receiving suggestions for improving profitability, participating companies are provided access to Profit Toolkit Online, an Excel-based tutorial that covers a different aspect of financial planning each year.
The report includes an explanation of statistics and an executive summary containing an overview of the study results, distinguishing between the typical and high-profit trailer dealer. Results are tabulated and prepared for the NTDA by Profit Planning Group (Boulder CO).
To obtain a report, access www.ntda.org.