2022 P&L Study Review & Awards - Part A
by Tim Quebedeaux
Congrats to all the Garden Group Centers that reported in the 2022 P&L Study! To be able to even think about changing your business for the better, you need to be able to measure what you are going to change. Being able to report to The Garden Center Group Annual P&L Study is a great start! Once you have that accountability in the numbers, the all-important Key Performance Indicators (KPIs), you can begin to hold your business accountable for its profitability!
The P&L Study measures many different KPI0s. It starts with the big one, Revenue by category or department. Then it measures the next three as a percentage of those revenues, Cost of Goods Sold (and the reciprocal, Margin), Operating Expenses, Wage & Wage Benefits. Leaving us with the most important measurement that we all depend on, Profitability.
In the P&L Study, Profitability is measured as a percentage of revenue, with the earnings being measured Before Interest, Taxes, Depreciation, and Amortization (EBITDA). This is also known as an Operating P&L Statement. This is key, as it allows us to compare the operation effectiveness of each center to each other in apples-to-apples factors.
As we look at profitability, there are several benchmarks we look at. Above 0% means you are “making” money, but that can be deceptive. We really look at 5% profitability on the P&L Study to maintain business level. Between 0% and 5% means you are moving standing still or even worse going backwards, while attaining 5% means you can at least keep up with needed changes to keep you a relevant business. That 5 to 10% mark would place you in the High Achiever Status (will be slightly higher percentage if you are a Retail Grower depending on how much grown product was sold).
Once you go over the 10% profitability mark, you have attained Best Practices Status (will be higher if you are a Retail Grower depending on amount of grown product sold). Sustained 10% profitability and above will show in maxing out the Big 3 Ps that allow Independent Garden Centers to be the best: People, Product and Phacility (facility)…. This is done, by allowing the profit to flow back into the Garden Center year after year until all aspects of operations and facilities are up to date. Something that 5% and below profitable Garden Centers are not able to sustain, making a huge difference in long-term profitability.
The highest level we recognize is the Best of the Best! This is the top ten performing Garden Centers (who report fully to the study). This group was formed in 2020 when more than 50% of the Centers who reported in 2020 and 2021 attained Best Practices. To set the expectation of always striving to get better, we wanted to identify what the Best of the Best did in those years to be on top. Thus, giving those who achieved Best Practices something to aim for. We don’t want to be static, or to stop trying to get better… Always improve, if you stand still, you will be passed up!
So, without more words… Here are the Winners of the 2022 P&L Study:
High Achievers – 23 Centers (up from 18 in 2021)
Apenberry's Gardens
Barton Springs
Bedner's Farm & Greenhouse
Bountiful Acres
Burnett's Country Gardens
Civano Nursery
Clark Farms
Dickman Farms Greenhouse & Garden Center
Durham Garden Center
Ellis Home & Garden - Alexandria
Fairview Greenhouses
Four Seasons Nursery
Gateway Garden Center
Graf Growers
Growing Place, The - Naperville
Hunters Garden Centre Inc - Vancouver
Jericho Nursery
Louisiana Nursery - Perkins/Corp
Natorp Nursery Outlet
Reems Creek Nursery
Rhoads Garden Center
White Oak Gardens
Wilson's Garden Center
Best Practices - 26 including Best of the Best (down from 47 in 2021)
Atlantic Nursery
Berns Garden Center Beavercreek
Berns Garden Center Middletown
Bloom Greenhouse & Garden Centre
Buchanan's Native Plants
Ellis Home & Garden - Longview
Fiddleheads Garden Center
For Garden's Sake
Gardens of Babylon
Growing Place, The - Aurora
Kerby's Nursery & Landscaping
Mostardi Nursery
Pinder's Nursery
Shonnard's
South Pleasantburg Nursery
Town & Country Gardens
Best of the Best - Top 10 of Best Practices
B.B. Barns - ASH
Covington Nursery
FarWest Landscape & Garden Center
Gill Garden Center & Landscape Co.
My Secret Garden
New Garden Gazebo
Plants for All Seasons
Rockledge Gardens
Sunnypoint Gardens
Watters Garden Center
The ultimate representation of the P&L Study results shows the three levels of profitability in the Bubble Chart. Remember, the size of the bubble represents the actual net profit dollars. The bigger the bubble, the more profit dollars. The higher the bubble represented the higher percentage of profit. And finally, the position of the bubbles from left to right represents the total sales volume for that Center. All charts have been standardized to show 40% net profit at the top line and $12 million for annual volume on the far right side.
As you compare 2019, ‘20, ‘21, & ‘22... Which direction is profitability flowing?
Congratulations to all the Centers that reported in the 2022 P&L Study and especially to our Award Winners!
What will the 2023 P&L Study be in comparison? You are creating those numbers right now. I can't wait to see them!
Got questions or need more information about The Group's the Annual P&L Study or the Weekly Department Review (WDR)? Give Tim a call or email.
Tim Quebedeaux
Cell: 770.355.6249
Email: CLICK HERE
Tim Quebedeaux, RetailKPI Consulting, is a service provider for The Garden Center Group and manages all Group financial sharing programs. The Weekly Department Review (WDR) and The Annual P&L Study are industry exclusives developed by The Garden Center Group and are included in your retainer!
REMEMBER: Your interaction (by phone and email) with Group Service Providers such as Tim Quebedeaux, Sid Raisch, Jean Seawright, John Kennedy, and of course Danny Summers are included in your retainer! So what are you waiting for? Take advantage of all that The Group has to offer and give them a call or send an email now!
