2000 Best Practices Study

III. Expenses (Agencies with Revenues Less than $500,000)

Average +25% Profit +25% Growth

Compensation Expense Total Payroll

43.9% 31.8% 40.6%

Benefits

7.3% 4.5%

6.2%

Total Compensation

51.3% 36.3% 46.8%

Selling Expenses

T & E/Conventions

3.0% 3.1% 2.6% 3.7% 3.1% 3.8% 8.7% 10.7% 5.6% 5.8% 2.3% 2.6% 1.2% 1.1% 2.4% 3.7% 1.4% 0.7% 1.2% 1.2% 2.5% 3.2% 0.8% 0.2% 1.2% 1.0% 0.2% 0.4% 0.5% 0.5% 1.8% 0.6% 0.6% 0.9% 0.5% 0.3% 0.6% 0.8% 4.2% 0.9% 0.4% 0.3% 2.2% 1.0% 1.3% 0.0% 8.7% 3.0%

2.9% 2.5% 3.7% 9.1% 3.8% 2.5% 1.2% 3.9% 1.3% 0.9% 2.9% 0.8% 1.1% 0.4% 0.1% 2.2% 0.8% 0.6% 0.3% 1.9% 0.0% 1.7% 0.0% 3.9%

Automobile

Advertising/Promotions

Total Selling

Operating Expenses Occupancy

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees Equip Rental/Maint Outside Services Data Processing Education/Training Bad Debts

Miscellaneous

Total Operating

22.2% 22.1% 22.5%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

90.8% 72.1% 82.3% 9.2% 27.9% 17.7%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% % Net Revenue

Compensation

Selling

Operating

Adminstrative

Average +25% Profit

+25% Growth

Analysis of Agencies with Revenues Less than $500,000

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