How do I check an industrial supplier’s counter sales versus delivery sales?
Ask for sales split by channel: counter, delivery and any online or phone orders, with margin and cost attached to each. Counter sales tend to carry different margins and customer loyalty than delivered sales, which bring trucks, drivers and fuel. Compare both against the books before you decide which one you are actually buying.
Counter and delivery are two different businesses under one roof. Ask the seller to separate the invoices by channel for several full periods, along with the staff and vehicles that serve each. If the system cannot split them, ask how the owner reaches their own view and test it with a sample.
Then look at margin. Delivered orders carry drivers, vehicles, fuel and time, which can eat the gross margin. Counter sales may be quicker but depend on location and walk-in habits. Ask which channel the best customers use and which is growing. Ask whether a few customers use both channels in different ways, such as a contractor who collects small items and has bulk orders delivered. Understanding that mix helps you avoid cutting a service that quietly supports the other.
Visit the counter at different times of day. Watch who comes in, whether contractors wait in line, and how staff handle questions. A busy counter with knowledgeable staff is hard to replace. Check how pricing differs, and whether some customers use both channels. Your accountant can help you tie the channel figures back to the financial statements and the delivery costs.
Key takeaways
- Ask for invoices split by counter, delivery and phone or online orders.
- Compare the cost of drivers, vehicles and fuel against delivered margins.
- Visit the counter at several times of day and watch who actually buys.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are financial statements?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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