Report benchmarks distributor profitability

Being a typical truck equipment distributorship that earns 3.5% profit isn't “good enough” when a high-profit firm can generate a profit margin of 7.8%, according to the 2007 Distributor Profit Survey Report recently released by the National Truck Equipment Association (NTEA). Survey results are based on 2006 data.

Findings are based on income statement, balance sheet, and operating data provided by participating NTEA Distributor Members and provide guidelines for analyzing profitability among truck equipment companies. The report looks at three major factors — sales growth, gross margin, and payroll expenses — that influence a profit margin.

The report's Executive Summary reviews the results and emphasizes the differences between the typical and high-profit NTEA member.

Non-participating NTEA members may purchase the report for $100. Non-members may purchase the report for $200. To purchase a copy or for more information, visit NTEA.com or call 800-441-6832.

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