From file "040_pss" entitled "PSBRFS07.qxd" page 01
From file "040_pss" entitled "PSBRFS07.qxd" page 01

What does the National Lumber and Building Material Dealers Association's (NLBMDA) annual “Cost of Doing Business” report (CODB) offer you?

  • Trends in the building material industry related to product and customer mix, operating efficiencies, and employee productivity.
  • Investment requirements in people, cash, and equipment to obtain the highest levels of productivity and profits.
  • Insights into how to make your company more competitive in this evolving industry.
  • Every year hundreds of the nation's top NLBMDA member dealers participate in the CODB survey. Participants submit valuable financial and operational information, then the data is compiled and analyzed into an extensive report that provides the necessary insight and aids for understanding the trends, profit opportunities, and challenges facing the nation's building material dealers.

    Dealers that did not participate this year can still reap some of the same benefits from this report, such as understanding the “Best Practices” business model that would optimize profitability with just the right emphasis on sales growth, gross profit margin, and expense control.

    Additionally, the benefits of the information presented in the CODB extend well beyond the universe of dealers. Industry suppliers and service vendors, for example, can use the CODB to gain a better understanding of the impact their products and services can have on the typical building material dealer.

    This year the CODB has been expanded to provide even more information about our industry. In addition to the traditional measurements and ratios, the 2005 report includes information on gross margin by product and customer categories, salaries broken down into cost center activities, seasonality information, and a survey of space utilization.

    The comprehensive “Cost of Doing Business” report is now available from NLBMDA and can be purchased by contacting Anna Gilbert at or 800.634.8645. The cost of the report is $275 for members and $350 for non-members. —Steve Davis is president of MGT Strategies in Greenville, S.C.