What are the key financial metrics for a timber dealing business?

Key performance indicators for timber dealers include: gross margin percentage (target 25–32% blended), net profit margin (target 4–8%), stock turnover (target 6–8× per year), debtor days (target <35 days), return on capital employed (target >15%), revenue per employee (target €300,000–500,000), gross profit per employee (target €80,000–120,000), delivery cost as % of revenue (target <5%), waste/damage as % of stock value (target <2%), and customer retention rate (target >85% year-on-year). Monitor these monthly and benchmark against industry averages.

Key performance indicators for timber dealers include: gross margin percentage (target 25–32% blended), net profit margin (target 4–8%), stock turnover (target 6–8× per year), debtor days (target <35 days), return on capital employed (target >15%), revenue per employee (target €300,000–500,000), gross profit per employee (target €80,000–120,000), delivery cost as % of revenue (target <5%), waste/damage as % of stock value (target <2%), and customer retention rate (target >85% year-on-year). Monitor these monthly and benchmark against industry averages. The Timber Trade Federation publishes annual benchmarking data for UK members.

Why this matters

This question relates to Timber Dealer Margins & Distribution: Industry Guide, which covers the broader topic in detail. Understanding this specific aspect helps architects, builders, and timber dealers make informed specification decisions.

For full context and additional technical detail, see our comprehensive guide:

→ Timber Dealer Margins & Distribution: Industry Guide

Related questions

• What are typical gross margins for timber dealers?
• What is the difference between stock and indent trading?
• How do timber dealers add value beyond simple distribution?

About this answer

This answer is part of the PuurModulair Knowledge Base — comprehensive timber specification guidance for architects, builders, and dealers across the UK, EU, and Scandinavia. All technical content is reviewed by qualified timber technologists before publication.