Gross Profit Margin

What is your Gross Profit Margin (GPM)?

  • <=10%

    Votes: 2 4.5%

  • <=20%

    Votes: 6 13.6%

  • <=30%

    Votes: 5 11.4%

  • <=40%

    Votes: 5 11.4%

  • <=50%

    Votes: 9 20.5%

  • <=60%

    Votes: 7 15.9%

  • <=70%

    Votes: 4 9.1%

  • <=80%

    Votes: 5 11.4%

  • <=90%

    Votes: 1 2.3%

  • <100%

    Votes: 0 0.0%
  • Total voters
    44
I dont mind sharing the info, most business in America are lucky if the average 11%.

My numbers are right around that mark, i certainly dont want to give it the man.

How you choose to operate your book is realative to your finance strategy.

for instance, GM makes 35 billion and gives a raise to VP and they show less profit. Its a game with numbers but you have to play them.
 
Profit whats that ? LOL I think I spend half of what I make buying stuff for my machine and chemicals and plastic and what not , then about 30 % on the bills and the other 20% on my wife and daughter and thier needs... WOW no wonder Im broke..
Seriously doesnt everyone get 110% ... or is that give.... Or is that what we pay the IRS I cant remember...
 
pressurepros said:
Not that I can think of off hand. Unless you want to post your gross profit ;-)
Click to expand...

I figure you saw my tax liens at 1.2.. you being a wiz could figure my gross. keep in mind those are 1996.

I've grown a bit and paid them since then.

LOL
 
Wow you guys who are making 20% and up are ripping people off! Those scum sucker oil barrens Exxon Mobil have right at a 10% profit margin. If thier ripping peeps off you must be.
 
RMedbery said:
Wow you guys who are making 20% and up are ripping people off! Those scum sucker oil barrens Exxon Mobil have right at a 10% profit margin. If thier ripping peeps off you must be.
Click to expand...

How long have you been in biz Rog?
 
Gross profit defined.

"The profit before overhead (fixed operating expenses) has been deducted." I call it "Out of pocket" costs to do a project. Some folks call this "Cost of Goods Sold".

Is this the number that you guys have been talking about?

Dave Olson
 
Dave Olson said:
Gross profit defined.

"The profit before overhead (fixed operating expenses) has been deducted." I call it "Out of pocket" costs to do a project. Some folks call this "Cost of Goods Sold".

Is this the number that you guys have been talking about?

Dave Olson
Click to expand...

COGS is not Gross profit
 
Hello David,

I got this doing a Google search. :cool:

"Gross Profit Margin Definition

What remains from sales after a company pays out the cost of goods sold. To obtain gross profit margin, divide gross profit by sales. Gross profit margin is expressed as a percentage.For example, if a company receives $25,000 in sales and its cost of goods sold were $20,000, the gross profit margin would be equal to $25,000 minus $20,000, divided by $25,000, or 20%. Basically, 20% gross profit margin means that for every dollar generated in sales, the company has 20 cents left over to cover basic operating costs and profit."

This content can be found on the following page:
http://www.investorwords.com/2250/gross_profit_margin.html

Dave Olson
 
Yea the COGS is more than what some may realize... In service business it's the labor and materials or costs to do project as David says.Taking such from your overall net sales gives you your gross profit. Then your margin is that gross profit divided by your overall net sales. ref- http://www.investopedia.com/university/ratios/profitability-indicator/ratio1.asp
Many of us little guys can't truly know our gross profit less we pay ourselves and by such can't know our net anything. Irs of course comes to a conclusion rather easily though and that's about how I figure things.. I just divide what they tell me by amount of hours I put in and call it $150 an hour.. lol
 
I may have this wrong but my cost of doing business this year was $104,000. To pay my two guys it cost me close to $60,000. My business net about $250,000. I have tax shelters to protect some of the money. So basically my take was $86,000 which that works against my "other" job which pays me around $135,000. I pay alot of taxes on that job and none on my powerwasher job except for sales tax. So I beat the price down some by putting some money in tax holdings...457k Roth Ira's etc.... Either way I am not making enough money considering I keep my wife home(By her choice since she is the boss)
 
Though I am not comfortable posting proprietary information like that, I will say that my gross profit margin is higher than ay others I have seen here, but then I have also been accused of being a low baller.
 
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