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ID900/ID909/ID910 - Financial Benchmark Model Reporting (SBA) Overview & Sample

In the copier market the concept to use a model to define "what good looks like" started with Tom Johnson and the Global group of companies. Sometimes referred to as the "Global Model" (or the Tom Johnson Model or Hey Hanson Model), it's the concept of setting a benchmark for what should be achievable. For example making 52% profit in service. By understanding what well run companies are achieving dealers can compare their numbers and see the areas where (in theory at least) there is room for improvement.

Putting the numbers together for the model is a process that would typically take several days working spreadsheets, however once our system is set up it’s a one minute exercise.

Strategic Business Associates continue to evolve the benchmarks for dealer groups including the CDA, BPCA, SDG & PDG so that these members can share their model % with each other without having to share their actual financial $$.

Our trio series of alerts (ID900 ID909 ID910) give you the tools to review your Financial Performance.

Some of the typical benchmarks are: 

 

Revenue For: COGS For: Expense For:
Equipment Equipment Salary & Wages
Supplies Supplies Payroll Tax
Service Rental Employee Benefits
Rental Service Occupancy
Managed Services Admin  

 

Strategic Business Associates (SBA) benchmark these numbers for four of the main copier dealer groups, The Copier Dealer Association (CDA), The Business Products Council Association (BPCA), The Select Dealer Group (SDG) and The Pro Dealer Group (PDG). They also teach theProFinance Business Model with regular classes every few months. All 4 groups have the option to have the numbers they turn in to SBA be certified by CEO Juice (via alert ID912). With this pool of about 150 dealers, SBA are able to best define what the benchmark numbers should be. In addition companies like Pros Elite Group can help you fine tune.

We have a trio of alerts necessary in order to produce these reports results:

1. ID900 is our report that shows your mapped numbers with the SBA chart of accounts and your financial numbers.

You can run the report via SQL Reporting Services (SSRS) as needed AND we will send an email on the every Monday & Thursday of the new month until it has a chance to report on the closed period. This email will containing a link to the SSRS Report, a snapshot and excel doc of the first page:

Email Content:

Attached Excel File Sample:

The SSRS Report has drill downs. Numbers outside the model are in red, accounts not mapped correctly are highlighted. Please see this post for instructions on running ID900.

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2. ID909 is a report to help you review and analyze your financials month over month for rolling 12 months and help to understand how they can be improved. This is the key report as you are looking for trends!

 

3. ID910 is a report to help you analyze what accounts are mapped and has no financial data.

 

 

There is a one time exercise to map all your chart of accounts so we can report everyone the same regardless of your accounts. This is ID893 - Financial Model Mapping Application. 

See alert ID912 for process to certify data for the SBA Model and the annual dealer survey.

 

 

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