Jan. 8, 2021 – We discovered some new stuff earlier today that we think you might find interesting! We were checking out our recent study on wages (The 2021 Printing Industry Wage & Benefits Study) when we came across three interesting graphs that we thought might be worth sharing with the industry.
Sales Per Employee has always been one of our favorite ratios that we like to use and illustrate overall productivity and efficiency in our industry. If you’ve never calculated this number shame on you!
Simply divide annual sales (actual or projected) by the total number of “bodies” or employees used to produce those sales to arrive at your SPE. Be sure to count everyone – owners, managers and partners. If they work in the business, whether they are paid or not, they need to be counted.
How much do owners make? Our 2021 Wage & Benefits Study, among dozens of other key ratios, breaks out participants and ranks them by their reported “Owner’s Compensation.” The ranking is further divided into four quartiles. Although drawn from a unique data base, the responses are shockingly similar to more than a dozen similar breakouts we have used in the past. The bottom line (excuse the pun) is that 25% of the industry reports averaging less that 3% in terms of owner’s compensation, while the top quartile averages approximately 22% – Quite a spread!
Survey Participants Ranked by 2020 Sales – About 25% of our survey participants reported average 2020 of approximately $450,000, while the top quartile in terms of annual sales reported average sales of $3.2 million in 2020. This distribution of participants by annual sales is quite similar to sales distribution reported in other recent NPRC reports.
For additional information on this study, including a downloadable Table of Contents, visit the NPRC Bookstore today.