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ATO helps jewellers rate their performance
ATO helps jewellers rate their performance
 










ATO helps jewellers rate their performance

Jewellery and watch retailers can measure-up against the industry benchmarks using new information provided by the Tax Office.
Released specifically for watch and jewellery retailers, the performance benchmarks take financial information from all businesses in the industry.

The data allows jewellers to compare their performance to some of the industry averages and identify where improvements can be made.

The information divides businesses into three categories: Low (between $75,000 and $250,000 in annual turnover), Medium ($250,000 - $750,000) and High ($750,000 - $2 million).

Using the average figures from each category as a guide, the ATO then calculates the percentage of turnover the categories spend in three key areas: stock, labour and rent.

The full set of statistics, based on the 2007-2008 financial year, can be found in the table below.
 
JAA CEO explained how retailers could use the data to improve their own business.

“You can rate yourself relative to the benchmark. For example, if your figures are worse than the benchmark then you know something is wrong, maybe you’re not buying efficiently or you’re pricing your product too low,” he said.

Hadassin said the information, while helpful, was “very limited” in scope.

He said he hoped the JAA would undertake its own benchmarking with more specific information for jewellers.

More comprehensive data, including: “Sales, gross profit percentages, occupancy costs, employment costs and advertising” would be included in the JAA’s report.

The benchmarking survey will be announced “in the next few months”, although Hadassin said it all depended on cooperation from members.

“Many of our members would love to get the information, but in order to get it they have to give their own information,” he said.

“I’m hoping our members will see the benefit of taking part.”

Hadassin said the information would be collected in “complete confidence” by international accountancy firm Deloitte. All information collected will remain confidential, and only averages calculated across the entire industry will be published.

Below are the figures provided by the ATO. Hadassin said retailers who find the information helpful should consider the benefits a far more comprehensive benchmark could bring.



Annual turnover range
BenchmarkLow
$75,000 - $250,000
Medium
$250,000 - $750,000
High
$750,000 - $2 million
Cost of goods sold / turnover35% - 47% 39% - 51%34% - 54%
Labour / turnover0% - 14% 10% - 18%13% - 21%
Rent / turnover9% - 19%8% - 16%6% - 12%

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Missed point
The tax office will use this as a base for finding those of us who are pocketing undeclared income - so watch out
posted by Garry Holloway on June 08, 2010 15:52


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