You may find it surprising to learn that many people in the early education industry have never known how much some of their primary expenses should be. Oftentimes, we come into the business and we find a way to make it work and then we stop looking for ways to continue improving. You can use the table below to see if you can improve the performance of your own center or school. The “Industry Normal” amounts below are based on information gathered directly from centers and schools across the U.S. To calculate your own percentages, simply divide your expense amount by your Gross Revenue.
Expense Amount as a percentage of Gross Revenues: Gross Revenue = $_______________
| Actual | Industry Normal | |||||
| Salaries/Wages for Employees: | _____% | 45% – Maximum 50% | ||||
| Occupancy Cost (Rent or Mortgage): | _____% | 12% | ||||
| Food: | _____% | 4% | ||||
| Utilities: | _____% | 2% – 3% | ||||
| NOTES TO SELF: | ||||||
It may help you to know that this simple table has helped countless people improve the profitability of their childcare centers and schools. Remember, a small percentage change can mean a material improvement in dollars.
What is the major expense in your childcare?
I hope it helps. If you have any questions, you can contact us anytime you like at BFSINC.NET or call us toll-free at 800-467-1774.
Talk with you soon.
Best to you….Brad Barnett, President BFS®
BFS® is the Largest Non-Governmental Provider of FREE Resources to the Early Education Industry. If you have questions on a topic, watch a quick video by going to our YouTube Channel or access information by clicking on the Instant Q & A tab at the top of this page.
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