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Blog · Wallet share and penetration · Construction and building materials

Category share by trade: plumbers, electricians and builders against their own norm

How a builders' merchant measures each trade account's category basket against the norm for its trade rather than against the branch average: the categories a plumber's account typically buys and at what share, the same for an electrician, a general builder, a roofer, the accounts below their trade's norm in a category they should buy, the value at norm, and why the trade field on the account master is the most valuable column the branch never fills in.

The short answerA plumber, an electrician and a general builder buy different baskets, and a category gap measured against the branch average tells the electrician to buy pipe. The norm per trade, from the merchant's own accounts of that trade where it supplies most of their materials, says which categories a trade account typically buys and at what share. Accounts below their trade's norm in a category their trade buys are the list, valued at the norm, and the trade field on the account master, usually half empty, is the column that makes the list right.

A merchant's branch sees a trade account that spends a lot and buys from two categories. Whether that is a gap depends on what the account is: an electrician buying cable and consumables is complete; a general builder buying only those is missing timber, aggregates and sheet materials. The trade field and the norm per trade separate the two. This guide sets out category share by trade, the norm, the list, and the trade field's data quality.

The measures

Per account, per category:

Category share = category spend ÷ account spend

Per trade, per category:

Norm share = median category share among full-supply accounts of the trade Norm penetration = share of such accounts buying the category

Per account:

Gap in category = (norm share − category share) × account spend, for categories with norm penetration above a floor Value at norm = Σ gaps

The rows you need

  • Ledger: account, category, spend.
  • Account master: account, trade, branch, full-supply flag.

Account identifiers only.

The assertion

every account has a trade, confirmed or inferred, or is listed untyped

Untyped accounts are excluded from norms and from the list, and counted per branch.

Norms, worked

Category Plumber: share, penetration Electrician General builder
Pipe and fittings 41%, 98% 2%, 20% 8%, 70%
Cable and accessories 3%, 30% 55%, 99% 6%, 65%
Timber and sheet 6%, 40% 4%, 30% 32%, 97%
Aggregates 2%, 20% 1%, 10% 18%, 92%
Tools and consumables 14%, 95% 20%, 96% 12%, 96%

A worked list

Account Trade Spend Categories below trade norm Value at norm Data quality
2207 General builder, confirmed £84,000 Aggregates 0% vs 18%; timber 12% vs 32% £32,000
4471 Plumber, confirmed £41,000 None
9034 Electrician, inferred £22,000 Timber 0% vs 4% small Confirm trade
1187 Untyped £60,000 Type the account

Account 2207 is a builder buying no aggregates and a third of the timber a builder buys, from a merchant that sells both. Account 9034 is an electrician by its basket, and its gaps are small, as an electrician's should be. Account 1187 spends sixty thousand and nobody knows what it is.

Per branch

Branch Accounts Trade confirmed Inferred Untyped Value at norm, typed accounts
B-04 620 41% 38% 21% £410,000
B-11 480 88% 9% 3% £290,000

Branch B-04 has a fifth of its accounts untyped and the largest value on the ones it has typed. Typing the rest is a morning's work at the counter.

Where it goes wrong

Norm from the branch average. Electricians told to buy pipe.

Trade field empty. The list is built on a fifth of the book.

Low-penetration categories expected. Plumbers told to buy aggregates.

Inferred trade treated as confirmed. The basket that looks like an electrician may be a builder's first month.

Every month, per account against its trade

Mapped once, the ledger and the account master produce the trade norms, the gaps, the value at norm and the trade data quality per branch every month. Covirage builds this from the exports as they are. The construction page describes the setup, and the contractor share guide covers the category share measure this trade norm refines.

Questions people ask

Where does the trade come from?

The account master's trade field, where the branch filled it in at opening; otherwise inferred from the account's own basket, a probable trade labelled as inferred, and confirmed by the branch. The share of accounts with a confirmed trade is the report's data quality figure, per branch.

What is the norm per trade?

Among accounts of the trade where the merchant supplies most of their materials, the median share of each category in their spend and the share of such accounts buying the category at all. A category most plumbers buy is expected at a plumbing account; one few buy is not.

How is the value computed?

The account's total spend times the trade norm's share for the missing or under-bought category, less what the account spends there. Labelled at norm. It ranks the list and sizes the conversation at the counter.