2000 Best Practices Study

III. Expenses (Agencies with Revenues Between $1,250,000 and $2,500,000)

Average +25% Profit +25% Growth

Compensation Expense Total Payroll

54.8% 52.0% 53.6%

Benefits

9.4%

7.3%

7.4%

Total Compensation

64.2% 59.3% 61.0%

Selling Expenses

T & E/Conventions

1.2% 1.1% 1.6% 3.9% 5.2% 1.7% 1.0% 1.5% 1.1% 0.5% 1.8% 0.9% 0.8% 0.1% 0.5% 0.9% 0.5% 0.6% 0.7% 2.2% 0.2% 1.3% 0.7% 5.2%

1.6% 1.0% 1.3% 3.8% 3.2% 1.4% 0.9% 1.8% 1.0% 1.1% 1.4% 0.8% 1.0% 0.2% 0.3% 0.6% 0.4% 0.6% 0.0% 1.9% 0.5% 0.8% 0.0% 3.3%

1.6% 0.7% 1.4% 3.7% 4.2% 1.3% 0.8% 1.3% 1.0% 1.2% 1.8% 0.5% 1.0% 0.3% 0.2% 1.0% 0.5% 0.4% 0.2% 2.2% 0.4% 1.1% 0.1% 4.0%

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

17.3% 14.8% 15.5%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

90.6% 81.2% 84.2% 9.4% 18.8% 15.8%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% % Net Revenue

Compensation

Selling

Operating

Adminstrative

Average +25% Profit

+25% Growth

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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