2000 Best Practices Study

III. Expenses (Agencies with Revenues Between $2,500,000 and $5,000,000)

Average +25% Profit +25% Growth

Compensation Expense Total Payroll

57.1% 58.1% 63.1%

Benefits

8.2%

6.9%

7.7%

Total Compensation

65.3% 65.0% 70.7%

Selling Expenses

T & E/Conventions

1.5% 1.0% 1.5% 4.1% 4.1% 1.3% 0.9% 1.5% 0.8% 0.5% 1.5% 1.0% 0.4% 0.2% 0.5% 1.3% 0.4% 0.4% 1.3% 1.7% 0.3% 1.2% 0.5% 4.9%

2.2% 1.1% 1.3% 4.5% 4.0% 1.0% 0.7% 1.2% 0.6% 0.8% 1.3% 1.2% 0.4% 0.1% 0.1% 1.3% 0.3% 0.3% 0.1% 0.9% 0.3% 0.3% 0.0% 1.5%

1.3% 0.8% 0.7% 2.8% 3.7% 1.2% 0.6% 1.1% 0.7% 0.8% 1.4% 1.1% 0.4% 0.1% 0.4% 1.3% 0.4% 0.3% 0.6% 1.5% 0.3% 0.5% 0.2% 3.0%

Automobile

Advertising/Promotions

Total Selling

Operating Expenses Occupancy

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

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

Miscellaneous

Total Operating

14.7% 13.4% 13.5%

Administrative Expenses Amortization

Depreciation Officer Life

Interest

Other

Total Administrative

Total Expenses Pre-Tax Profit

88.9% 84.4% 90.1%

11.1% 15.6%

9.9%

80.0%

60.0%

40.0%

20.0%

% Net Revenue

0.0%

Compensation

Selling

Operating

Adminstrative

Average +25% Profit

+25% Growth

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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