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Blog · Wallet share and penetration · Construction and building materials

Ten questions a builders' merchant managing director asks, and the table that answers each

The ten questions the managing director of a builders' merchant puts to the branch managers, which trade accounts buy below their trade's norm, which accounts were opened and never used, which good payers are stuck at their credit limit, which contractors won projects nearby and have no account, which accounts lapsed against their own cadence, what is category share per branch, which branches have not typed their accounts, which counter customers deserve an account, what is contribution per account after drops and returns, and what changed, each with the table from the ledger, the account master, the credit file and the project data, and the answer to send back.

The short answerA builders' merchant managing director's questions are about branches and trade accounts, and each has a table from the ledger, the account master, the credit file, the point-of-sale export and the project data: category share by trade against the trade norm; the account-opening funnel per branch and opener; credit headroom with the constrained good payers; the project overlay matching planning data to accounts; dormant accounts by run rate and own cadence; category penetration per branch; the trade field's data quality per branch; repeat counter customers with no account; contribution per account with drops and returns; and the movements page. Every account is in one state and one trade or is counted untyped, and the answer to send back is a branch manager's feel for the branch.

A builders' merchant managing director asks the branches how the month went and hears about the weather and the big contractor. The ledger, the account master, the credit file and the project data hold the branches as tables. This guide is the ten questions, the tables, and the answer to send back.

The ten

# The question The table Identity Send back
1 Which branches have typed their accounts? Trade confirmed, inferred, untyped per branch; value at norm on typed Every account typed or untyped Assumed
2 Which accounts buy below their trade's norm? Category share by trade against the trade norm; gaps valued Category spend sums Branch average norm
3 Which accounts were opened and never used? Funnel per branch and opener: opened, first purchase, six months Opened in one state Accounts opened
4 Which good payers are stuck at their limit? Credit headroom; constrained test; split by payment history Balances sum to receivables Sales report alone
5 Which contractors won projects nearby with no account? Project overlay: matched, not buying; unmatched; valued at rate Kept separate from ledger measures A planning feed nobody reads
6 Which accounts lapsed? Dormant by run rate against own cadence; seasonal flagged Accounts in one state Days-silent list
7 What is category share per branch? Penetration per branch against the norm Same as 2 Branch revenue
8 Which counter customers deserve an account? Repeat walk-ins by token; value at account norm Counter revenue in three classes Counter sales as noise
9 What is contribution per account? Margin less drops, returns, lines at stated rates Margins sum to ledger Revenue ranking
10 What changed? The movements page Every line cites Narrative

A worked exchange

MD: How is branch B-04 doing? Response: 41 percent of accounts trade-confirmed, 21 percent untyped; £410,000 of value at norm on the accounts it has typed. Account 2207, a confirmed builder at £84,000, buys no aggregates and a third of the timber a builder buys. Tables 1 and 2. MD: And the new accounts there? Response: Forty opened a month, fourteen bought within thirty days, nine still buying at six months. One opener accounts for two thirds of the openings and a fifth of the purchases. Table 3. MD: Credit? Response: Account 2207 again: at its £40,000 limit for a quarter, pays within terms, four orders held, £110,000 a year constrained. A limit review, not a collections call. Table 4.

Three tables, one branch, one account with three findings.

Where it goes wrong

Branch feel as the report. The weather and the big contractor.

Trade field empty. The norm applied to nobody in particular.

Credit and sales never joined. The good payer at the limit blamed on a competitor.

Accounts opened as the measure. Records, not customers.

Every month, ten tables

Covirage produces the ten tables from the ledger, the account master, the credit file, the point-of-sale export and the project data, with the identities checked. The construction page describes the setup, and the category share by trade guide covers the second table.

Questions people ask

Which question first?

The trade field's data quality per branch, because the trade norm is what makes every category gap right, and a branch with a fifth of its accounts untyped is building its list on four fifths. Typing the rest is a morning at the counter, and the value at norm on the typed accounts says what it is worth.

Do these need the credit file?

Credit headroom does; it is the credit file joined to the ledger. The funnel, the dormant list, category share and contribution come from the ledger and the account master. Counter customers from the point-of-sale export; the overlay from purchased project data. All exports.

What is the identity?

Accounts equal active plus dormant plus lost plus insufficient history; opened accounts equal never purchased plus purchased within thirty days plus later; outstanding balances sum to the receivables ledger; every account has a trade or is untyped. A category gap measured against the branch average is sent back.