ASTRA’S INSIGHTS
CAN YOU SPARE A COUPLE OF HOURS?
Learn to benchmark your store in 2019 to help create aggregated performance data for your business. by KIMBERLY MOSLEY, president, American Specialty Toy Retailing Association
THE RESULTS ARE IN. 2017 YEAR-OVERyear sales growth hit a five-year high at 7.9 percent. Net profit margin showed a healthy increase: 6.4 percent in 2017, up from 5 percent in 2016. Total operating expenses continued a decreasing trend to land at the lowest percent of sales in five years. These are some topline numbers from the 2018 retail benchmarking survey of retailers who are members of the American Specialty Toy Retailing Association (ASTRA). Each year, ASTRA hires an independent third-party survey research and analytics firm—Industry Insights Inc. of Columbus, Ohio—to conduct this study. Participating ASTRA retailers who provide selected balance sheet, income statement, and point-of-sale (POS) system data, all kept confidential, receive a complimentary business analysis that compares their store’s performance against other ASTRA stores based on scores of metrics. “ASTRA members are known for their generosity in sharing information and ideas,” says Linda Hays, owner of Hopscotch Toys and Games in McMinnville, Ore. “Those onestore owner-to-another conversations are an extremely helpful way to compare notes in an everyday experience sense. The benchmarking survey adds another dimension to the ways ASTRA retailers help each other by giving us aggregated performance data that smooths out differences in individual stores.” Mary Sisson, owner of Kazoodles Toy Store in Vancouver, Wash., admits that the report she receives each year sometimes spotlights weaknesses in her store that is news to her. “The results are not always pretty, but I’ve always learned from them and acted on them,” Sisson says. “For example, the survey typically showed that my occupancy expenses were high. The last time I renegotiated my lease, I presented ASTRA benchmark data to my landlord and guess what? I successfully reduced my rent!” Sue Warfield, ASTRA’s director of member
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relations, notes that ASTRA never sees any data from individual stores. “It’s completely private and your responses never come through ASTRA’s hands,” Warfield says. “Anyone who gets a copy of the report—and that includes ASTRA—sees only the aggregate data.” The next benchmarking survey will land in retailer’s inboxes during the second quarter of next year. “Chances are, it’s simpler than you think to complete it,” Warfield says. Here are some tips for getting it done, so you can look forward to your free business analysis: Put it on your calendar now. Block out time in late April or early May. Most individuals can complete the survey in a couple of hours or less. While you are at it, Sisson suggests, put an appointment with yourself on the calendar in September to spend a few thoughtful hours with the results. This will set you on the path to use your time wisely and participate in the survey. Focus on the value of the results. “Minor tweaks in your business can make major differences in your bottom line,” Hays says. “If that’s not motivating enough, think about what you can do when you have that report in your back pocket, such as take it to the bank if you are looking to get a loan for expanding your business.” Understand the numbers needed. “If you have a POS system, it’s a piece of cake to complete the survey,” Hays says. “The numbers you need are already in there and on your balance sheet and income statement. Don’t overthink it.” Let Industry Insights fill it out for you. Industry Insights thought of ways to make the survey faster to complete. Here’s a big one: Let them enter your data. Just send your balance sheet and income statement
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from your tax return, and they will take it from there. You will still need to enter some information from your POS, but a big chunk of the work will be off your plate if you delegate it to Industry Insights. Interested in seeing the full 2018 benchmarking report? If you didn’t get a free copy following your participation in the survey, you can purchase it on ASTRA’s website. Visit the ASTRA Academy at academy.astratoy.org/ catalog for details. Looking ahead, why not make 2019 the year you check out what the ASTRA benchmarking survey can do for your store? “This member benefit is such a gift from ASTRA,” Sisson says. “If you’re not going to unwrap it and see what you’ve got and do it, you are throwing away something that can be such a valuable service for your store.” » Kimberly Mosley, president of the American Specialty Toy Retailing Association, is an experienced, award-winning, results-oriented association executive with a long track record of success in managing association operations, developing innovative programs, and growing revenue.
