If you benchmark to the average and then reduce everything to the benchmark, would you expect to only get average? And is average good enough? Benchmarking is great for assessing where you are in a marketplace, but it is hopeless if you simply use it to make everything average. Find out why in a Golden Minute.
Interested in benchmarking your agency costs?
We do that work.
But do you know where benchmarking comes from?
It’s actually an English surveying term.
The surveyor would benchmark the height above sea level on a building like a church or a town hall in each village, then they compare the height of all other structures in the village to the benchmark.
But they don’t then proceed to cut them all down to the benchmark height.
So why when benchmarking agency fees do people want to reduce the agency fees to average? Or less?
Especially as if you pay peanuts you get monkeys.
Benchmarks tells you what you are paying compared to the benchmark, not what you should pay. Only you can make that decision.