ALARM INSTALLATION SERVICES INDUSTRY BENCHMARKS

Knowing the industry benchmark for your security alarm business or your fire alarm business helps you gauge your  business’s performance, identify growth opportunities, and make informed strategic decisions.

The main activities for businesses in this industry are the installation of fire alarms, smoke alarms and security systems.

These benchmarks do not apply to businesses installing alarms and security systems in motor vehicles, video surveillance systems, or the importers and manufacturers of alarm and security systems.

Performance Benchmarks

These performance benchmarks have been developed from income tax and business activity statements lodged for the 2015–16 income year.

The key benchmark ratio for this industry is cost of sales to turnover. This ratio is likely to be the most accurate predictor of business turnover. 

For businesses that do not report cost of sales or only report a small amount, total expenses to turnover can be used to predict turnover.

Key Benchmark Ratio	Annual Turnover Range
	Low $50,000 – $150,000	Medium $150,001 – $600,000	High More than $600,000
Income Tax Return
Cost of Sales / Turnover	20% - 38%	28% - 41%	32% - 43%
Average Cost of Sales	29%	35%	38%
Total expenses/turnover	46% - 68%	60% - 76%	80% - 88%
Average total expenses	57%	68%	84%
Activity Statement
Non-capital purchases / total sales	35% - 57%	46% - 59%	49% - 59%

The benchmarks are published as a range representing ratios reported by businesses grouped either side of the average. Publishing benchmarks as a range allows for variations across financial years, regions and business models.

The following benchmarks are available as a guide for businesses to review their performance and business practices against other similar businesses. The following expenses are not reported by every business, so one or more of these benchmarks may not apply to an individual business.

TALK TO US ABOUT HOW INDUSTRY BENCHMARKS CAN IMPROVE YOUR BUSINESS

		Benchmark Ratio	Annual Turnover Range
Income Tax Return	Low $50,000 – $150,000	Medium $150,001 – $600,000	High More than $600,000
Labour / Turnover	23% - 33%	17% - 31%	24% - 36%
Rent / Turnover	3% - 6%	3% - 5%	2% - 3%
Motor Vehicle expenses / turnover	6% - 9%	4% - 6%	2% - 3%