• What it means to be outside the benchmark

    Your calculated benchmark might be above or below the range for your business turnover in your industry. If you have included all your income there may be reasons for this difference, such as higher costs or lower selling prices than your competitors.

    When we see a business outside the key ratio for their industry, it indicates something is unusual and it may prompt us to get further information from them or their suppliers or customers.

    Reporting above a benchmark range

    If your business is reporting above the benchmarks, it means your expenses are high relative to sales.

    This may indicate that:

    • you have high wastage
    • your competitors may be able to source inputs at lower cost than you
    • your volume of sales is too low (for rent and possibly labour)
    • your mark-up is lower than your competitors
    • you haven't recorded all your sales
    • your internal cash controls may need to be examined.

    Reporting below a benchmark range

    If your business is reporting below the benchmarks, it means your expenses are low relative to sales.

    This may indicate that:

    • your expenses may be recorded under the wrong label
    • some of your expenses may have not been recorded
    • your mark-up is higher than your competitors
    • you have less wastage.

    See also:

    Last modified: 24 Feb 2016QC 47939