Top Shops Executive Summary

2011 Executive Summary

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Executive Summary BUSINESS STRATEGY & PERFORMANCE The Top Shops invest more in capital equipment than the other shops. As a percentage of sales in 2010, the Top Shops invested 8 percent in capital equipment versus 3 percent for the other shops. However, all shops expect capital equipment spending to increase in 2011 by approximately 44 percent. For 2010, the Top Shops reported a median ROI for capital equipment of 18.5 percent compared with 17.5 percent three years prior. This figure was 10 percent in 2010 for the other shops, unchanged from 2007. While all but one of the Top Shops provided figures about capital equipment ROI, only 45 of the nearly 150 other shops offered answers. This indicates that leading shops tend to be more disciplined about calculating, considering and studying such helpful metrics than lower-performing shops. Examining median figures for gross sales per employee, the Top Shops were able to generate approximately $127,000 per employee in 2010 versus $118,000 for other shops. However, it is primarily the small shops that expect sales per employee to rise in 2011, while larger shops actually expect this key performance indicator to decrease. Median gross sales in 2010 for all surveyed shops was approximately $1.6 million, but this value is expected to increase by 20 percent to $2 million in 2011. When looking at mean values, however, this growth is expected to be only 6 percent. Either way, small shops are more likely to realize the greatest boost in sales. For shops with annual sales of less than $500,000, the median sales increase expected in 2011 is 70 percent while the mean increase is an equally impressive 50 percent. The median profit margin value for the Top Shops in 2010 was 13 percent versus 10 percent for the other shops. This shows slight improvement for the Top Shops, which had a profit margin of 12 percent three years ago. Conversely, the other shops showed a profit margin decrease, albeit slight, from 10.6 to 10 percent. Which of the following are effective sales/marketing tools for your business? 58.0% Sales personnel Online — company website Customer tours Brochures/catalogs Tradeshows/events Online — advertising Email promotions Print advertising (e.g., magazine) Social media (Facebook, Twitter, LinkedIn) Blogs YouTube None of these 0 3.6% 2.7% 3.8% 3.6% 5.4% 3.0% 17.8% 10.8% 19.7% 10 20 30 40 50 60 70 80 6.8% 50.0% 42.0% 37.8% 43.2% 41.4% 40.2% 29.6% 27.0% 30.3% 16.0% 24.3% 13.6% 12.4% 10.8% 12.9% 12.4% 10.8% 12.9% 7.7% 10.8% 46.0% All Shops Top Shops Other Shops 59.5% 57.6% 55.0% 73.0% SPONSORED BY AMT amtonline.org | IMTS imts.com 21

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