I was doing some prep work for a speech for the Health Industry Distributors Association (HIDA) when an item on their Members’ Financial Survey jumped out at me. Atypically, the survey had a set of numbers showing the three-year trend for gross margin dollars per full-time equivalent employee (FTEE). It got me thinking about the following.
What’s a Good Level to Grow Gross Margin Dollars per FTEE?
It varies depending on the channel, but among HIDA distributors the average for the last three years has been about $135K gross margin/FTEE. However, the best performer in each of three sub-groups in 2015 was 16%, 60%, and 90% higher than the average.