Hey guys! Quick correction here, after editing I noticed at 2:11 I wrote $26,000 and it really should've been $24,000. Don't make the same mistake, just use a calculator. Here's that link again: www.contractorgrowthnetwork.com/margin-and-markup-comparison/ -Aaron
For a trades business that charges time and material, what would you include in the labor portion? I'm assuming it would include the net pay to the employees plus the government remittances, WCB and any benefits the business pays for? Thanks.
All I can say “that would’ve been bad”. Figuring out 50% GPM is easy. You just 2x COGS. I was accidentally marking up instead of calculating margin when using lower rates. Thank you! Bookmarked the calculator!
Honestly, I never fully grasped the difference between margin and markup and your brief explanation in the beginning of the video made it click. Thank you! One critique: please explain the difference between gross profit margin and net profit. So many contractors don’t get this.
It depends on how your business is set up. Both ways work! Here's an article that breaks down some info www.cirruspayroll.com/own-a-business-dont-put-yourself-on-payroll-before-reading-this/
Hey guys! Quick correction here, after editing I noticed at 2:11 I wrote $26,000 and it really should've been $24,000. Don't make the same mistake, just use a calculator. Here's that link again: www.contractorgrowthnetwork.com/margin-and-markup-comparison/
-Aaron
what about i want make a100% profit
@@carsonliu9039 Using his example, you'd need to charge 1,200,000.
For a trades business that charges time and material, what would you include in the labor portion? I'm assuming it would include the net pay to the employees plus the government remittances, WCB and any benefits the business pays for? Thanks.
All I can say “that would’ve been bad”. Figuring out 50% GPM is easy. You just 2x COGS. I was accidentally marking up instead of calculating margin when using lower rates. Thank you! Bookmarked the calculator!
That’s exactly why we made it! Love it.
Can we connect via email or social media?
Honestly, I never fully grasped the difference between margin and markup and your brief explanation in the beginning of the video made it click. Thank you!
One critique: please explain the difference between gross profit margin and net profit. So many contractors don’t get this.
Love to hear it Amanda! And we can definitely cover that. Thanks for the suggestion!
Excellent!
I’m a solopreneur. Does the payroll to myself come out of the profit or should it be included in the cost of every job I do?
It depends on how your business is set up. Both ways work! Here's an article that breaks down some info www.cirruspayroll.com/own-a-business-dont-put-yourself-on-payroll-before-reading-this/
Usually owners salary comes is in with overhead
Thank you 🙏🏾
How does 12,000 divide by 49 equal 26,000 im so lost.
Thanks for letting me know which contractors to avoid, lol.
Any time 😘
100
how about i want 100%gross profit？
If you want that then just take the job and only accept 100% of your charges upfront. As soon that’s paid, don’t show up to the job… simple!
dude, shouldn't the answer be $24,000 for a 50% gross profit? $26,000 is incorrect and even your online calculator agrees : )