Definition of Overheads%
All Venues are faced with large back-of-house and general costs in order to operate a Venue. These overheads represent, on average, 27 - 35% of total Venue revenue. It continues to be an area Venues must benchmark to ensure Overheads expenses are in line with industry spending.
Overheads(%) is the management KPI to monitor spend in this area and is calculated as follows:
What are the KPIs that make up Overheads?
The KPIs that make up overheads are:
- Overhead wages
- Employee On-costs
- Repairs + Maintenance (R+M)
- Marketing + Promotions (M+P)
- Advertising
- Entertainment
- Energy
- PPS (printing, postage, stationery)
- Overhead other costs