I received this information from a business coach.  It seems to be the benchmarks our industry is using.  A report with these numbers would be helpful.  I'm in the process of learning how to use the plethora of excellent data BlindMatrix collects.

Does anyone else use this metric to manage their business?

to Make More Money in Less Time

Just knowing your numbers and setting a goal will automatically guide you to improve. “If you don’t measure it you can’t manage it”.

1.            Monthly Appointments

Total your names of appointments you saw in the last 3 months. Then divide by three to get your monthly benchmark. (Only count FIRST appointments where you met a customer in their home.)

2.            Monthly Customers Sold

Again, total the names of customers you sold in the last 3. Divide by 3 to have your monthly benchmark. Don’t worry when you had your first appointment. It could be months before you wrote the contract for a sale.

Divide your monthly customers sold by your monthly appointments. If you sold 8 and had 12 appointments, your benchmark for Closing Rate is 67%.

4.            Average Customer Sale

Total the names of customers you sold in the last 3 months. Then divide your total sales by number of customers. If you sold $60,000 to 30 different customers, your benchmark for Average Customer Sale is $2,000

5.            Gross Profit and Gross Margin

Your quickest path to better profit. Here’s how to calculate: Take total customer sales for 3 months. Subtract cost of goods sold (called COGS). If you sold $60,000 and product cost was $35,000, the difference is $25,000. That is your Gross Profit number.

Now, divide $25,000 by your sales of $60,000. That gives you your Gross Margin percent, 42% in this example.

This is a common number for many retailers.  But exceptional business owners pay only $24000 for product! That gives them $36,000 Gross Profit and 60% Gross Margin. Sounds impossible, but it isn’t.

Once you know your benchmark numbers, your next step is to set goals around WHAT to do – which to improve – and in order of priority.

For example, many businesses want to increase appointments and closing rate. But, that is not your best opportunity. This is where INFORMATION helps you make good decisions.

A BETTER decision is to improve Gross Margin and Average Customer Sale. That will make you more money more quickly!