Sales/Labor Ratios

[Tony Muto]

Are there any industry measures/benchamrks for the optimum sales per labor hour and sales per labor dollar? How about for labor %, as a % of sales? I ask these questions as I try to detrermine expectations for efficiency of labor.

[gogreencanada]

Labour should not exceed a maximum of 60% of the total expense budget. The lower the %, the better. Just be careful not to run yourself to thin on labour.

[Tony Muto]

Oh Canada!!

What % do you beleive expenses for cost of goods, equipment and general operating expenses should be, as a % of sales?

[PROCUT1]

In a service business you should strive for 30% of gross sales. though in this business it is not uncommon to be in the 40-45% range

[MacLawnCo]

Im projecting 42.8% for this upcoming year, including labor burden. Id like to get it closer to 50% but that is only going to happen by reducing other variables, not increasing pay.