"How is my business doing compared to others?"

November 28, 2006
I receive this question from my clients on a regular basis. The survey below compares a sample of my clients in the southern United States using 2006 vs 2005 data.

.................................Percent of Sales..Variance from last year
Sales................................100.0%..................+10.2%
Cost of goods sold...............50.5%..................+10.8%
................................=============================
......Gross Profit....................49.5%..................+09.6%
Administrative Expenses
...Advertising..........................1.0......................+16.2
...Auto Expense..................1.3...................... +37.6
...Bank Charges......................0.4......................+41.7
...Contributions......................0.2.......................-23.6
...Dues & Subscriptions.........0.1.......................-30.1
...Insurance............................2.0.......................+12.6
...Office Supplies.....................1.2......................+01.1
...Outside Services............3.1...................... +66.8
...Professional Fees.................0.6......................+13.7
...Rent-Lease Payments..2.6..................... +26.3
...Repairs & Maintenance.......0.4.....................-05.8
...Salaries & Wages.................21.0....................+14.9
...Taxes & Licenses..................0.7.....................-13.0
...Telephone..............................0.8.....................+17.3
...Travel & Entertainment.....0.0......................-54.0
...Uniforms................................0.2.....................+05.1
...Utilities...................................0.7.....................-04.0
...Other - Miscellaneous..........0.2..................+302.6
................................=============================
.....Total Administrative........36.4%..................+17.7%
................................=============================
Net Income..........................13.1%................... -07.9%

The survey does not take into account depreciation and interest expense. Sales are up, but Administrative expenses are way up from last year. Notice a large increase in auto expense and outside services even rent and lease payments, causing actual profits to go down. Photo above taken this past spring, with my wife and I, on our 24 foot Sea Ray Sundeck. Henry (CEO)