2008 CEDIA Benchmarking Survey

Statistics and Findings

CEDIA member companies have an average of 8 employees with 6 of those being full-time. Nearly half of all employees are technicians.
72% of companies reported increased revenues overall from 2006 fiscal year to 2007 fiscal year, with a mean increase of 28%.
Across all respondents, average net profit is 7% of revenue.
Revenues are directly correlated with average project size and years in business. Revenue is higher among those who have been in business longer and those who have larger projects.
On average, cost of goods sold (COGs) represents 68% of revenues with little variation across company size or years in business. Equipment and materials is the primary component at about 40% of revenues.
On average, operating expenses represent 25% of revenue. Owners’ compensation is the largest component at 8% of revenues.
While distributed audio and visual and home theater/media rooms are the top two revenue sources across all respondents, companies with larger annual revenue ($500K+) are seeing a growing percent of revenue from systems integration and lighting control.
56% of ESCs report that they job cost labor and materials by project. Companies with larger revenue and more years in business are more likely to job cost.
70% of contracts are fixed price. Fixed price contracts remain the norm regardless of company size, project size, or years in business.
67% of ESCs use design software, 50% charge for design services, and 33% charge a design retainer. Of those firms charging for design services, 5-7% of the contract amount is typically charged for design.
60% of all respondents indicated that they have a showroom. 89% of companies with $2 million or more in revenue have a showroom. The median cost to build a showroom was $65K.
91% of companies with a showroom believe it establishes credibility and 65% believe it was worth the investment.
Existing clients and home builders are the top two referral sources, with an estimated 75% of referrals yielding actual business.
Companies with the highest revenues and the largest project sizes put a greater emphasis on marketing to, and receive more business from, architects.