Entries by admin

SEMA Show Opinion Leaders Report Released; SEMA Market Research by Hedges & Company

The Specialty Equipment Market Association (SEMA) released a new SEMA market research report written by Hedges & Company. It covers results of the SEMA Show Opinion Leaders program. Hedges & Company is a market research company serving the automotive aftermarket. This is important market research for aftermarket companies. The feedback from the Opinion Leaders SEMA […]

How will 2011 be for the Automotive Aftermarket Industry?

Happy New Year for the automotive aftermarket industry! Following up on our popular blog post “What If You Invested $1,000 in Automotive Aftermarket Companies” the Hedges & Company Automotive Aftermarket Index finished 2010 with a 48% gain. In a dramatic comparison, the S&P 500 only increased 11% in 2010. Not only did the Hedges & […]

How to Calculate Gross Margin Return on Investment (GMROI) to Manage Inventory

Learn calculate GMROI (Gross Margin Return on Investment) in Excel. The Turn/Earn Index and GMROI are two simple ways to help manage your inventory and run your business. Need to know the GMROI formula? Read on! GMROI formula definition: GMROI defined: GMROI evaluates profitability of inventory with a ratio. It analyzes a company’s ability to […]

Stages of Growth in a Company and ‘Growing Pains’

As a business grows, it goes through major, distinct phases of growth. These phases have unique characteristics and challenges and require some strategic planning. Recognizing these characteristics (even better, preparing for them) will help you manage your business through these challenges, or “growing pains.” Growth Stage One: $1 million (manufacturer) or $2 million (distributor) The […]

How A Price Increase/Decrease Affects Gross Profit vs. Unit Sales

(Note: if you just need to calculate gross margin or mark up, please scroll down.) Calculate increase decrease in gross margin If you want to increase gross margin with a price increase, you should know how gross profit is calculated and assuming a drop in unit sales, how many unit sales are needed to maintain […]

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Rule of Three Marketing: Market Share and Market Dynamics

Why do some companies thrive and dominate their market segment, only to later become an afterthought? Market dynamics and the Rule of Three explains how some companies succeed and some fail. Most industries and market segments, including the automotive aftermarket, will have market share dominated by three competing companies. This article will take that a […]

Learn How To Do 80/20 Analysis in Excel to Analyze your Business

Learn how to do an 80/20 analysis in Excel, and use the 80/20 principle to manage your business, reduce costs and increase your profits. You’ve probably heard about Pareto’s Law or the 80/20 principle, although most people only understand 20% of it, 80% of the time (rim shot!). This simple principle can be used to […]

Why Was This Recession Different? It Was the Double-Dip In Auto Parts Sales

When looking at the auto parts retail segment of the economy, the Great Recession not only lasted longer than previous recessions, but our market research shows auto parts retail sales also had a double-dip. For all the talk in the news media earlier this year whether the recent recession would fall into a double-dip recession, […]

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What if You Invested $1,000 in Automotive Aftermarket Companies?

Also see our update on this topic, posted November 2, 2010 If you invested $1,000 in the S&P 500 and $1,000 in a representative group of publicly-traded automotive aftermarket companies on January 1, 2008, how would your investment look today? You may be surprised. Starting with a baseline of January 2008, Hedges & Company tracked […]

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Ideas For The Best Email Marketing Subject Lines

Email marketing best practices call for analysis of subject lines which have a huge influence on the open rate. An appropriate subject line also influences the click-through rate. Why is this so important? Let’s say in a year you send 100,000 emails. Improving your open rate from 15% to the industry average of just over […]

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Hedges & Company Principals To Speak at SEMA Show

Tuesday, November 2 at 11:00 am, Julie Hedges, President of Hedges & Company, will speak about the SEMA Financial Benchmarking program in room N259 at the Las Vegas Convention Center. How does your business compare? The SEMA Financial Benchmarking Program was developed in order to provide SEMA members with financial benchmarks they could use to […]

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A Checklist If You’re Thinking of Selling Online

A friend of ours, Rob Eberhart, posted a good checklist to follow if you’re considering selling automotive performance parts and accessories online. Rob’s an expert on selling auto parts online and works at Direct Communications, Inc. (DCi), and his blog is over on the CatalogRack eStore site, found here. His checklist is good advice for […]