Why Benchmarking Matters in the Water Restoration Industry—And How to Start
Water restoration is fast-paced, unpredictable, and full of financial blind spots. Most business owners know their gut tells part of the story—but not all of it. That’s where benchmarking comes in.
Whether you’re trying to grow, improve margins, or just figure out what “normal” looks like, water restoration benchmarking gives you the data to track performance and make smarter decisions.
What Is Benchmarking?
Benchmarking is the process of comparing your company’s key performance indicators (KPIs) to industry standards. It answers questions like:
Is your labor cost in line with others?
Are your overhead expenses out of control?
Are your profit margins healthy—or dangerously thin?
Without this data, you’re managing in the dark.
Why Benchmarking Matters in Water Restoration
1. It Replaces Guesswork With Clarity
Most contractors look at their financials and wonder, “Is this good?”
Benchmarking gives you context so you can actually answer that question.
2. It Helps You Catch Issues Early
Falling behind on net profit? COGS creeping up? Benchmark data helps spot the warning signs before they become major problems.
3. It Guides Strategic Decisions
Whether you’re hiring, investing in equipment, or raising prices—benchmarking helps you move forward with confidence.
4. It Tracks Progress Over Time
If you’re working hard to improve operations, benchmarking tells you if it's working. You’ll know when you’re beating the industry—and when you’re slipping behind.
Key Metrics to Benchmark in Your Restoration Business
When we benchmark restoration businesses at Kiwi Cash Flow, we focus on these core KPIs:
Labor % of Revenue
COGS (Subs + Materials) %
Overhead %
Net Profit Margin
Average Job Size
Accounts Receivable vs. Payable Days
Utilization Rate
How to Start Benchmarking
You don’t need to reinvent the wheel. Here’s how to begin:
✅ Step 1: Track Your Monthly KPIs
Make sure your bookkeeping system (like QuickBooks Online) is up to date and that your chart of accounts is structured for job-cost clarity.
✅ Step 2: Compare to Industry Data
Use real-world benchmarks—not just your own historical averages. A number that “looks fine” could still be underperforming for your industry.
✅ Step 3: Review Trends
Are you moving closer to target benchmarks each quarter? That’s how you build a stronger, more profitable company.
Join Our Free Benchmarking Project
At Kiwi Cash Flow, we make this easy. You submit a few numbers, and we calculate your KPIs and send you a clean, anonymous report showing how your performance stacks up.
No spreadsheets
No guesswork
No cost
Better data leads to better decisions.
If you want to grow profitably and avoid financial blind spots, start benchmarking now.