Annual P&L Study 2020 - Best of the Best

Annual P&L Study 2020 - Best of the Best

by Tim Quebedeaux

The Best of the Best group from this year’s P&L Study really stood out.  Who are they… you will find out, but first what defines Best of the Best?  They are the top ten in profitability from those who filled out all 5 parts of the P&L Study.  They performed to the tune of 18-25% Profitability… WOW!

As stated last week, we had 74 Garden Centers report to the study, but only (Steve and I are always wanting more…) 41 filled in all 5 parts.  Did you know there were 5 parts to reporting to the P&L Study? 

They are:

  1. Revenues, COGS, Operating Expenses, and Wage & Wage Benefit Information;
  2. Physical Facility Information;
  3. Revenue, Transaction Count, Labor Hours Information;
  4. Average Inventory Information;
  5. Balance Sheet Information

Steve and I aim high, we want everyone to fill out every part of the study… Let’s go through Part 1 today, and the rest in coming weeks.

Reporting to part one starts with Revenues for each of the categories from the Groups Chart of Accounts.  There are 19 different categories in the COA.  You can download the COA HERE. The revenues you report should include any discounts that most POS systems account for by category.  If your discounts are not included in the category totals by your POS system, or if you have any coupons or bonus bucks redeemed, you need to report those as negative numbers below your revenues. 

After revenues, you will report on Cost of Goods Sold.  For this we use your Beginning Inventory plus Purchases minus Ending Inventory.  This needs to be done by each category in the COA excluding the Labor line (which is revenues collected for delivery, Installation, and services) as those do not have costs in COGS associated with them since that would be too hard to track, instead those costs are accounted for in Wage and Wage Benefits.  Freight should be allocated into each category in which it occurs.  If for some reason you have any unallocated freight, there is a space to report at the bottom of COGS part.  This freight will be prorated across all categories.

The next two areas remaining are Operating Expenses and Wage & Wage Benefits.  Following the Chart of Accounts for the Group, there are 51 different entries for Operating Expenses.  These expenses are anything not to do with product or people.  This area has the most line entries, yet the smallest percentage of dollars.  The Wage and Wage Benefits are all the people related expenses.  In both Operating Expenses and Wage & Wage Benefits, there are two expenses that are adjusted to fair rates for proper comparisons from center to center: Rent for Operating Expenses and Owners compensation for Wage and Wage Benefits.

Just from reporting to part one of the P&L Study, each Garden Center will be able to compare their Revenues, COGS, Operating Expenses, and Wage & Wage Benefits to others through their percent to sales by category.  In addition, they will be able to compare their attained margin to other groups.  Those Groups are Best Practices, Total Group, their Region, their mode of operation (Retail or Retailer Grower), and their Sales Group (less than $1.5M, Between $1.5-2.5M, or greater than $2.5M).

Below you can see how the Revenues and Costs compare in the 2020 study verses 2019. Remember the Best Practices Group has been the top performing group until 2020 when the Best of the Best Group was created. The bar has been raised!

Going forward I will discuss the other 4 parts to this robust P&L Study as well as reveal who are the High Achievers and Best Practices Garden Centers, as well who is the Best of the Best among those!!!

Got questions or need more information about The Group's the Weekly Department Review (WDR) or Annual P&L Study? Give Tim or Steve a call or email.

Tim Quebedeaux
Cell: 770.355.6249

Steve Bailey
Cell: 618.521.5225


Tim Quebedeaux and Steve Bailey with RetailKPI Consulting are service providers 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, Steve Bailey, Robert Hendrickson, Sid Raisch, Jean Seawright, and John Kennedy 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!

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