FIRST QUARTER 2019 27 MANAGEMENT Matters Matters BULLE TIN By Sandy Seay, Jr., Ph.D., Seay Management Consultants, Inc. NO. 44 2017 Operating Cost Survey Results and Worksheet Monitoring and recording the costs of operating a drycleaning business can be tedious at times but this information is needed to get a complete picture of the company’s financial health. DLI wishes to thank the members who completed the survey and shared their cost percentages. This information will be valuable to any plant operator. The following costs are listed as a percentage of sales revenue. YOUR PERCENTAGE Labor 35.28% __________________ Wholesale Labor and Expense 3.59% __________________ Office and Administration 16.05% __________________ (breakdown of costs) Payroll Taxes, Unemployment 3.12% ____________ Workers Comp 1.40% ____________ Liability Insurance 1.46% ____________ Environmental Insurance .25% ____________ Office Salaries & Expenses (subscriptions, dues, legal, accounting, etc.) 5.88% ____________ Employee Benefits (health, pension, vacation, etc.) 2.34% ____________ Travel & Education 1.00% ____________ Claims .6% ____________ Utilities 5.5% __________________ Supplies 5.72% __________________ Auto Expense (gasoline, oil, tires, maintenance, insurance, etc.) 2.93% __________________ Advertising & Public Relations 2% __________________ Building & Equipment Overhead 16.08% __________________ (breakdown of costs) Depreciation 3.52% ____________ Interest & Bank Charges 1.59% ____________ Repairs & Maintenance 2.07% ____________ Rent, Real Estate Taxes & Licenses 8.4% ____________ Janitorial & Waste Removal .50% ____________ Total Expenses 87.15% ________________ Profit & Executive Salary 12.85% ________________