Make a payment
Industry benchmarks Ngā paearu ahumahi

Under or over the industry benchmark range?

The benchmark ranges have been chosen so that most businesses in an industry are within or close to the published ranges.

If your business is performing under or over the industry benchmark range this could be due to a number of possible factors affecting business performance. Further, in some industries there may be regional differences in performance.

In some cases it may be possible to breakdown the benchmarks to better show businesses that are more like yours, or to add extra financial detail. Please contact Statistics New Zealand for further information (phone 0508 525 525 or info@stats.govt.nz).

Reporting under the gross profit ratio benchmark

If your business is reporting under the gross profit ratio benchmark it means your cost of goods sold is high compared with sales.

This may indicate that:

  • your competitors may be sourcing inputs at lower costs
  • you have high wastage
  • your mark-up is lower than your competitors
  • you may have different cost or pricing structures from your competitors
  • some expenses may be recorded against cost of goods sold
  • you may be operating in a niche, or specialist part of your industry
  • your business may be undergoing significant growth or decline
  • your business has recently opened or you are preparing to close down
  • you have incorrectly recorded expenses
  • you have not recorded all your sales (eg, cash transactions).

Reporting over the gross profit ratio benchmark

If your business is reporting over the gross profit ratio benchmark it means your cost of goods sold is low compared with sales.

This may indicate that:

  • you have less wastage
  • your mark-up is higher than your competitors
  • you may be operating in a niche, or specialist part of your industry
  • your business may be undergoing significant growth or decline
  • your business has recently opened or you are preparing to close down
  • some of your cost of goods sold may have not have been recorded
  • some of your cost of goods sold may have been recorded as expenses.

If any of these situations apply to you or if you need advice to understand your business performance, or on record keeping practices you may wish to discuss this with your:

  • tax agent
  • bookkeeper
  • accountant
  • industry association
  • business mentor
  • other business advisory service.

What you should do if you find a mistake in your tax affairs

If your business is outside the industry benchmark, we recommend you:

  • review your record keeping practices
  • consider how your business operates
  • check if you have made a mistake or not accurately reported all your income and expenses in your financial statements or tax returns.

If you discover a mistake or need to correct a tax return go to:

Find out more about how to correct a mistake in your tax affairs

We suggest you review your business performance against the industry benchmarks regularly. We will update these benchmarks each year.

Your registered tax agent, bookkeeper or accountant will be able to advise you on business and record keeping practices.