Subscriber Login

MDM Premium Content  What's this?
Close
Subscribe today to access MDM's premium content with two issues a month of timely and to-the-point content for the busy wholesale distribution executive. Here's what you get:
  • Analysis of distribution trends
  • Interviews with industry leaders
  • Quarterly Public Distributor Report
  • Quarterly Inflation by Commodity Group Report
  • Market and economic data analysis
  • Access to the best online research tool in distribution

And much more! Learn more

login close
Forgot Your Password?
For more precise results try using quotation marks ("") around your search terms. See more search tips.

 

Home » Gross Margins Ratios Stay Flat

Gross Margins Ratios Stay Flat

Ten-year trend shows most distributors maintain, even gain

By    Thomas P.  Gale 
April 10, 2004
More about:  Management/Strategy,  Sales & Marketing
The lament about increasingly lower gross margins is often heard over cocktails, but don't look to government data to support your case. Gross margins to sales ratio stayed flat or even increased from 1993-2003 across most wholesale sectors, according to the Annual Benchmark Report for Wholesale Trade released last month by the U.S. Census Bureau.

Exceptions: Electrical goods dropped from 24.01% in 1993 to 22.35% in 2002. In nondurable goods, paper & paper products distributors saw gross margins to sales ratios decrease from 25.28% in 1993 to 21.82% in 2002. Many distributors saw a low point in the gross margins to sales ratio in 2001.

Overall, gross margins increased slightly for durable goods wholesalers, from 23.33% in 1993 to 24.15% in 2002. The only year showing a ...

Text Size
Email ShareShare/Bookmark
The lament about increasingly lower gross margins is often heard over cocktails, but don't look to government data to support your case. Gross margins to sales ratio stayed flat or even increased from 1993-2003 across most wholesale sectors, according to the Annual Benchmark Report for Wholesale Trade released last month by the U.S. Census Bureau.

Exceptions: Electrical goods dropped from 24.01% in 1993 to 22.35% in 2002. In nondurable goods, paper & paper products distributors saw gross margins to sales ratios decrease from 25.28% in 1993 to 21.82% in 2002. Many distributors saw a low point in the gross margins to sales ratio in 2001.

Overall, gross margins increased slightly for durable goods wholesalers, from 23.33% in 1993 to 24.15% in 2002. The only year showing a ...



Print Email ShareShare/Bookmark
Use the form below to leave a comment

MDM Digital

Executive Briefing: January 2012The Case for Mobile
in Distribution Marketing
John Sonnhalter explains why distributors should include mobile in their marketing plans and how to start. Watch now.
iPad users: click here to view.		 Economic Update January 2012 Economic Update:
The Festering Euro-Crisis
MAPI Economist Kris Bledowski analyzes the outcome of recent meetings about the European banking and debt crisis. Watch now.
Bob DeStefano's #1 Mistake on Company WebsitesOnline Marketing Tips
from Bob DeStefano
Many companies make the same mistake on their company websites. Do you? Find out.		 More Audio and Video Features from MDM:

  • MDM Podcast

Think About It:
When They Google,
Will You Be There?

In this digital age, the first stop a potential customer makes is the internet. If you're not there, you're not part of the decision-making process.

Listen now.

Learn more or subscribe to the Think About It podcast.

  • Training

Upcoming Programs

Feb. 9: Operating for Profit: The Coming Revolution in Supply Chain Finance with Jonathan Byrnes. This program is part of the quarterly Islands of Profit Webcast Series.

Did you miss MDM's recent webcasts? Order the DVDs and share with your team today:

* Leading for Profit: How to Lead a Profitability Turnaround

* Inventory Management Best Practices in 2012

  • Featured

USAbrasives-100-for-trifecta

U.S. Abrasives Market Demand Report

This report provides a three-dimensional view into estimated market size, customer segment potential and customer size demographics for the U.S. Abrasives Market.

These three data slices give you deep insight into total market potential and your market share by both customer type and size.

Learn more about the U.S. Abrasives Market Demand Report

Training Resources

Current Issue   Management Tips 2011   Inventory Management   Benchmarks and Best Practices

Featured Article - MDM-Baird Benchmarking Survey: Distributor Optimism Returns

$34.95

Buy now >>

Management Tips from Modern Distribution Management

$49.95

Buy now >>

Inventory Management Best Practices with Jon Schreibfeder: DVD + Book

$119.00

Buy now >>

Benchmarks & Best Practices: The Answer Book for Growth-Minded CFOs & Controllers

$249.00

Buy now >>
Job Board
Title Company Location
Sales Account Manager - Energy Market Segment TESSCO Baltimore, MD
Channels Marketing Representative -- Advanced Supply Chain Business Information Systems Scientel Intormation Technology, Inc. Southeast Michigan
Technical Trainer - Innovative Change Agent - Long Island City, NY Daikin AC Long Island City, NY
Sales Representative Superior Essex Minnesota
Strategic Sales Consultant IDC-USA Indianapolis, Indiana
Counter Sales Heating and Cooling Supply Chatsworth, California
Counter Sales Heating and Cooling Supply Thousand Palms, CA
View ALL Wholesale Distribution Job Listings

Industry Topics

Distribution Trends RSS

Economy RSS

Management/Strategy RSS

Interviews RSS

Operations RSS

Technology RSS

Mergers/Acquisitions RSS

Case Studies RSS

Sales & Marketing RSS

Subscribe to MDM

Already an MDM Premium Subscriber?
Log in now.

Premium Subscription benefits

  • Practical strategies to cut costs, generate new revenue streams and enhance efficiency
  • Best-practice profiles of distributors to gain practical ideas for your company and benchmark your performance
  • Distribution management insights across product sectors to mine new ideas and approaches for driving your organization's strategy

Testimonials

"Trends and writing always on the mark. It’s concise, well-written and keeps me a step ahead." - Julia Klein, CEO, CH Briggs Hardware Co.

"MDM is a concise publication that has better content than any of the glossy trade magazines."
- Matt Onofrio, President, GT Midwest

Learn more or subscribe now. Choose your term:

Buy this issue now: Only $24.95

Only $34.95. You can apply the full pay-per-view cost toward an annual subscription.