Profit Margin Poll

[Coastal]

I am trying to determine the national average profit margin in the pressure washing biz. Please help!

 

[Coastal]

Profit Margin - the percentage of sales the company has left over as profit after paying all expenses.

In this poll, I am looking for your profit AFTER material (chemicals), labor, and miscellanous expenses (Fuel, Tolls, etc) pertaining to a particular job.

* Do not include overhead expenses (ie: electric, rent, phone, truck, advertising, etc.)

 

[oneness]

Maybe I'm missing how profit margin is calculated, but how can a person wind up with 150% of their sales left over after paying labor, chemicals, etc etc?

 

[Coastal]

Sorry Oneness, I should have worded this poll better and yes you are correct GPM never exceeds 100%.

GROSS PROFIT MARGIN = GROSS PROFIT / TOTAL REVENUE

I believe this should be the correct formula for this poll:

MARKUP RATE = (PRICE - COST OF SERVICES RENDERED) / COST OF SERVICES RENDERED)

Correct me if I am wrong.

I will create another poll for GROSS PROFIT MARGIN but this one still should be good for determining an average MARKUP RATE.

 

[Jon]

Coastal you do mean NET profit, what is left after all things are taken out of your pocket, right?

Does that mean after the wife or girl friend is finished removing her hand from the pocket?

Why you guys should give them a checking account and let them know what is in it is yours, once it is empty you wait a month till I refill it.

 

[Coastal]

NET PROFIT would include overhead I believe where MARKUP RATE does not.

Checking account not the problem, credit card purchases are the ones she thinks she can sneak by. I just pretend to ingnore the statements and let her enjoy herself.

 

[Jon]

Brett your to much

 

[Coastal]

Thanks

 

[The Cleaner]

I am trying to determine the national average profit margin in the pressure washing biz. Please help!

It would be real nice to have a 150 percent profit margin, after exspences
If that was the case, i would be able to keep up with the wifes spending..

 

[FCPWLLC]

Interesting results.... Poll shows that most folks don't have a good grasp of business numbers. I was the only one to vote <= 25 %. I guess most guys/gals aren't taking into consideration that thier salary is an expense. Profit is AFTER we take our salary.

 

[pressurepros]

Profit Margin - the percentage of sales the company has left over as profit after paying all expenses.

In this poll, I am looking for your profit AFTER material (chemicals), labor, and miscellanous expenses (Fuel, Tolls, etc) pertaining to a particular job.

* Do not include overhead expenses (ie: electric, rent, phone, truck, advertising, etc.)

If just factoring direct expenses, my number falls around 65%(decks)-75% (housewashes)

Net margin after all salaries and indirect expenses.. 15%

 

[Greg Rentschler]

20% left in the company for profit. I get the feeling a good majority are accounting under a sole proprietorship...

 

[Jonathan Ellis]

We net about 8%-10% per year.