Benchmarking his turnover to local competitors has saved a Canterbury machinery hire business owner $15,000 in six months.
Southbrook Hire owner Damian Wyatt said comparing himself to his competitors opened his eyes to the financial leaks in his business.
He discovered he was paying more for diesel and petrol than his three local rivals.
A switch to a new supplier saved the business 35 cents a litre.
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Benchmarking would save the business another $88,000 by November, Wyatt said.
Benchmarking is strategically used by many large businesses to increase productivity and profit.
But, small businesses can get the same reality check for free this month in a deal between benchmarking company Ranqx and ASB.
Ranqx chief executive and owner Dave Lewis said benchmarking highlighted opportunities where business owners could do better.
“We are trying to make sure they have a reality check,” Lewis said.
Ranqx allowed businesses to compare their expenses and profits to the best in the industry, Lewis said.
He said the platform showed businesses what competitors in their area were turning over without naming them.
Ranqx users could link their accounting data from Xero, MYOB, Sage or Quickbooks to the platform, Lewis said.
Financial advisors could also load their clients’ data to the platform.
As a marketing management consultant, Lewis spotted a gap in the market for a tool to help SMEs assess their performance and improve their business.
Ranqx has 14 Auckland-based staff and is chaired by former ASB and Air New Zealand chief executive Sir Ralph Norris.
Lewis said several thousand businesses paid up to $79 a month for the benchmarking reports.
In three years Ranqx had been in business it had developed one of the largest databases of New Zealand SMEs, Lewis said.
Statistics New Zealand also offers a free benchmarking tool for businesses in 45 industries including agriculture, construction, retail, education and food services.