Canadian PR Firms’ Profits Topped Those of U.S. Agencies
Profits: For a fourth consecutive year, Canadian PR firms’ profits topped those of U.S. agencies in the annual benchmarking survey of 101 U.D. and Canadian firms from Gould+Partners. Average profits of all surveyed firms in 2016 were “a paltry” 15.2% down slightly from 15.3% in 2015 and 16.2% in 2014. The eight Canadian firms surveyed averaged 23.4%. The survey’s best performers had an average operating profit of 20%+, partly due to holding “professional staff salaries to less than 40% of net revenue, total labor cost at 50% and operating expenses at around 25%,” says Rick Gould, managing partner. “This should be the goal for all firms.” Decreases in operating profit were “totally attributable to an increase in labor cost without a corresponding increase in fees,” he says.