Office furniture

Office World News, Mar/Apr 2003

* NEW FINANCIAL BENCHMARKING REPORT FOR DEALERS

The Office Furniture Dealers Alliance ( OFDA), a segment of the Independent Office Products and Furniture Dealers Association ( IOPFDA) has released a new OFDA Dealer Financial Comparison & Benchmarking Guide. The results of the study are based on the responses of 137 participating dealers who provided operating results from the 2001 calendar year.

The study found that there are significant differences between the financial and operating performance of "typical" and "high- profit" office furniture dealerships. A number of factors can lead to the differences in results. The high- profit dealer seldom performs better in all revenue and expense categories. Instead, it is the sum- total of their performance that produces dramatically improved operating performance.

By using the OFDA Guide as a benchmarking tool, OFDA was able to determine that controlling key pro! it variables are of iar greater significance in achieving financial success than simply increasing annual revenue - a focal point of many dealerships. The dealerships surveyed for the report posted average 2001 revenues of $16.9 million, and a pre-tax profit of 0.94 percent ( or approximately $159, 900). In contrast, "high- profit" dealers posted average revenues of $13.5 million, but a pre-tax profit of 5.46 percent ( or $736, 850).

According to the study, the typical dealer exhibited not only different sales volumes, but also different rates of growth when compared to high-profit firms. For example, regarding the typical dealer, revenue decreased by 4.99 percent from 2000 to 2001; by comparison, revenue increased for the high-profit dealer by 1.58 percent.

Another key measure of overall profitability from the report is return on assets ( profit before taxes, expressed as a percentage of total assets) . It is a measure of profit per dollar of assets. The median return on assets for all dealers is reported in the study at 4.32%. For high- profit dealers, the return on assets was 24.02 percent.

An added benefit to dealers who participate in the study is the Company Performance Report which presents a company's own ratios and data in a manner consistent with those appearing in the full report. The individual owner/manager is provided information without having to spend time and effort making the calculations manually. In addition, the confidential Company Performance Reports contain a qualitative assessment of a dealer's financial results.

Participation in the annual survey is open to all North American office furniture dealers. For information on ordering the 2002 report or participating in the 2003 survey, contact the OFDA at ( 800) 542- 6672 or info@ofdanet.org.

* NEW VERSION OF 20-20 GIZA SOFTWARE RELEASED

GIZA 2003 is the next major release of 20- 20 GIZA software featuring new powerful enhancements developed with the user in mind. GIZA, the leading non- AutoCAD hased space planning and presentation tool, continues to evolve with advances for office planning and selling.

Two major changes to the overall GIZA application include an updated user- interface incorporating a Microsoft Windows look and feel and an improved installation for adding and removing GIZA components. Users now have the capability to add and remove components from the standard Windows control panel. With greater toolbar control, users can select which toolbars to show/hide and are now dockable.

GIZA 2003's drawing and design tools are even stronger with improvements to Auto Hardware and drawing templates, DWG/DXF import capabilities, and the ability to merge existing drawings into a single drawing without having to create a Typical. The Auto Hardware utility can now be run on multiple lines of furniture at the same time, making it easier to use and allows better control over finish options. GIZA 2003 incorporates the latest version of OpenDWG, which improves DWG/DXF handling, and drawing templates can now be applied after a drawing has been created.