We start by considering dealers' net-to-gross ratios.
We begin by constructing a dealer's net-to-gross ratio for each day in the sample.
The net-to-gross ratio is positive if the dealer is receiving cash at the end of the day, and negative if the dealer is delivering cash.
We begin by analyzing the net-to-gross distribution for all dealers and then examine each dealer group separately.
The histogram of net-to-gross ratios for all dealers over the whole sample (Chart 3, panel A) highlights the diverse set of strategies followed by dealers.
Analyzing the distribution of net-to-gross distributions by dealer group, however, reveals stark differences in strategies pursued by each group.
Unrealistic programs include programs with higher than achievable net-to-gross efficiencies, or programs that immediately look the building team into highly efficient building concepts when efficiency is not the highest priority.
To help you make smart decisions about space and cost efficiency, I offer the following guide for identifying a realistic net-to-gross efficiency ratio based on some common lab plan organizations.