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EXPENSE ANALYSIS
A.
Expenses Analysis (as a % of Net Revenues)
Average
+25%
Profit
+25%
Growth
Compensation Expense
Total Payroll
55.1%
47.5%
57.4%
Benefits
9.1%
8.8%
9.6%
Total Compensation
64.2%
56.3%
66.7%
Selling Expenses
T&E/Conventions
1.1%
0.8%
0.9%
Automobile
0.8%
0.6%
0.8%
Advertising/Promotions
1.3%
0.8%
0.9%
Total Selling
3.2%
2.2%
2.5%
Operating Expenses
Occupancy
3.3%
3.1%
2.6%
Telephone
0.7%
0.7%
0.6%
Postage
0.6%
0.5%
0.6%
Supplies/Printing
1.0%
0.9%
0.8%
Dues/Subscriptions/Contributions
0.8%
0.7%
0.8%
Taxes/Licenses
0.3%
0.2%
0.6%
Insurance
1.8%
1.9%
1.8%
Professional Fees
0.8%
0.6%
0.9%
Equipment Rental/Maintenance
0.5%
0.4%
0.4%
Bad Debts
0.2%
0.3%
0.3%
Outside Services
0.6%
0.4%
0.4%
Information Technology
1.1%
0.8%
1.1%
Education/Training
0.4%
0.3%
0.4%
Miscellaneous
0.5%
0.8%
0.7%
Total Operating
12.7%
11.7%
12.0%
Administrative Expenses
Amortization
0.8%
0.5%
0.6%
Depreciation
1.3%
1.4%
0.9%
Officer-Life
0.4%
0.2%
0.2%
Interest
0.4%
0.3%
0.8%
Other
1.1%
0.1%
1.9%
Total Administrative
4.0%
2.5%
4.4%
Total Expenses
84.2%
72.6%
85.6%
Pre-Tax Profit
15.8%
27.4%
14.4%
AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000
70
2006
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
2006 Best Practices Study
% Net Revenue
Average
+25% Profit
+25% Growth
30%
20%
10%
0%
Compensation
Expense
Selling
Expense
Operating
Expense
Administrative
Expense
50%
40%
60%