How to Benchmark Your Business Costs (Without Trusting Fake "Averages")

A benchmark is only as good as its source. The "average cost per employee/seat/shipment" figures floating around online are mostly unsourced, stale, or drawn from businesses that look nothing like yours — so comparing to them tells you almost nothing. Real benchmarking compares your actual spend to sourced, like-for-like numbers.

It's tempting to Google "average cost of X" and feel reassured (or alarmed). But a made-up benchmark is worse than none — it gives false confidence. Here's how to do it properly.

Why most "average cost" numbers lie

Published averages circulate for years without a traceable source, blend wildly different business sizes and industries, and rarely say *when* the data is from. Pricing moves; a three-year-old "average" is fiction. If you can't see the source and the population, treat the number as decoration.

The right way to benchmark

• Like-for-like: compare to businesses near your size, sector, and volume — not a national blur.

• Sourced: know where the number came from and how recent it is.

• Your own trend: your best benchmark is often *you* — is this line item rising faster than your revenue?

What to benchmark first

Start with your biggest recurring line items — the ones that renew quietly every year: technology, telecom, payment processing, freight, benefits. That's where a real benchmark turns into real money.

Where do I get trustworthy benchmark numbers?

From actual market quotes and supplier comparisons for *your* profile — which is exactly what a benchmarking engagement produces. The structure matters more than any single published figure.

Build your own the right way — grab the free Cost Benchmark Cards template, or let us benchmark your spend for you.