The term "Benchmark" is used to describe a piece of information that can be used as a comparation with your businesses' performance so you have an understanding of how you compare to your industry standard performance. See Wikipedia for more. Benchmarks are very useful because, if you have nothing to compare your results with, you really have no idea if you are doing well or not. This article provides links to a number of industry comparison resources you might find useful. yellow belt
Common Industry Comparisons
- Gross Margin % - benchmark acceptable COGS and Revenue relationships
Go to the article: How Gross Margin Analysis Boosts Profit Explained
- Overhead Margin - benchmark acceptable relationships between Overhead Costs and Revenue
Go to the article: Overhead Margin Analysis Explained
Contribute other Benchmarking Resources
Help other businesses in your country and around the world by sending us links to other benchmarking resources we can list here.
Please contact us with links we can add.