What percentage of sales revenue do you spend on rent, labour and marketing. These are three key business performance indicators yet they are often not top of mind for newsagents. Labour should cost between 9% and 11% of revenue, rent should cost between 11% and 13% and marketing should cost between 2% and 5% if you are to be competitive.
If your costs are lower, good. If they are higher, you have work to do.
FYI, when I talk about revenue it is revenue from all products and commission from all agency business.
With the benchmark figures …
Do we include owner wages in the labour cost figure?
Does rent include outgoings?
Michael:
1. Absolutely.
2. Yes.
It’s the only to get a true picture of how the business is going.