Benchmark Cost of Service
Given your current annual sales, here's how much you can afford to spend annually on Cost of Sales expenses according to the recommended PPA Benchmark. You can also see how much studios who participated in the latest Benchmark Survey spent on their Cost of Sales.
Here's how much you now spend annually on Cost of Sales expenses, and how this compares to the recommended PPA Benchmark. You can also see how much studios who participated in the latest Benchmark Survey spent on their Cost of Sales
If your Cost of Sales exceeds the Benchmarks, your studio's bottom line profitability will be adversely affected.
What is your actual Cost of Sales level?
These are the types of expenses you'll need to consider as Cost of Sales expenses:
|Lab & Material Costs
Albums & frames
Shipping, packaging and merchant service charges
Wages & salaries paid
Payroll taxes paid
Workers compensation & Health insurance
Wedding & portrait session assistants
Production personnel - editing, imaging, framing, packaging, etc.
If your Cost of Sales exceeds the Benchmarks, your studio's bottom line profitability is adversely affected.
A key finding of PPA's latest Benchmark Survey is that the ability of a studio to control its costs (including Cost of Sales) was the prime factor in deciding bottom-line performance for both home and retail studios - not the capacity to increase sales. Learn more about strategies for controlling costs - and improving your bottom line - in PPA's Business Handbook.