yes the whole premise of the video is markup vs margin if the home is going to cost you 1mil to build you need to charge/markup 33.3% / 1.33mil to make a 24.9% gross profit margin. then subtract 14% overhead and you end up with a net 10% Net profit after its all said and done. We do 6-7mil a year with 12 employees and after hiring a bookkeeping team to really track every expense from Buildertrend our true overhead is around 14% I was shocked... our goal is 25-30% gross profit at proposal and with that goal we average 23-27% real data. we spend about 1% of revenue on advertising and are increasing to 2% this year.
Great advice, Thank You
Thank you for the advice
Historical it was 15%...now its about 54% ...around me maybe higher....its getting out of control in the US.
My country is running 30-50% margin.
so you're saying on a million dollar home the gross profit should be 33% ? that seems greedy no?
Very greedy indeed, doable but your reputation will plummet.
yes the whole premise of the video is markup vs margin if the home is going to cost you 1mil to build you need to charge/markup 33.3% / 1.33mil to make a 24.9% gross profit margin. then subtract 14% overhead and you end up with a net 10% Net profit after its all said and done. We do 6-7mil a year with 12 employees and after hiring a bookkeeping team to really track every expense from Buildertrend our true overhead is around 14% I was shocked... our goal is 25-30% gross profit at proposal and with that goal we average 23-27% real data. we spend about 1% of revenue on advertising and are increasing to 2% this year.
@@InnovativeBuildersmd And what is net out of that 7 mil ?
@@powshredder37169-13% net profit margin
Thank You
Great advice, Thanks
Great advice, thanks!