Carpeting services - issued 2010

Industry overview

The main activities for carpeting services businesses are carpet laying, carpet repairing and laying other kinds of floor coverings such as linoleum and cork tiles.

Performance benchmarks

These performance benchmarks have has been developed from income tax and business activity statements lodged for the 2007-08 income year.

	Annual turnover range
Ratio	Low $75,000 - $150,000	Medium $150,000 - $600,000	High $600,000 - $2,000,000
Labour* / Turnover	0% - 10%	15% - 33%	19% - 37%
Cost of materials / Turnover	12% - 22%	16% - 32%	27% - 43%

* This excludes payments to associated parties. This means that the labour percentage reflects payments made for work done by people unrelated to the owners of the business.

Cost of material

The cost of materials to turnover ratio will vary depending on whether the business providing the service also supplies the carpet or other floor coverings. Other material costs which are usually supplied by the business include underlay, tack strips, joining tapes and adhesives.

Rent cost

Approximately 94% of carpeting service businesses report no rental expenses and the remaining 6% reporting a small amount compared to their sales. That is expected given the itinerant nature of the work done and the fact that they do not usually need a separate office space or retail area.

Geographical trends

On average, there is no significant difference between regional and metropolitan areas in the average reported costs of labour and the cost of materials.