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Anyone ever firure out there overall profit margin from signs only
- Thread starter confused1
- Start date
Sign_Boy
New Member
Welcome from NJ.
You might want to ask this guy:
http://www.thesignexpert.com/TheSignExpert.com/Why_The_Sign_Expert.html
He's a merchant member here and is quite knowledgeable.
You might want to ask this guy:
http://www.thesignexpert.com/TheSignExpert.com/Why_The_Sign_Expert.html
He's a merchant member here and is quite knowledgeable.
Sign_Boy
New Member
Pat Whatley
New Member
after materials, rent, utilties, payroll, taxes, retirement plan, and everything else under the sun the average "profit" that I get to stick in the bank for future needs (flatbed printer and paying cash to buy our building) is exactly 19.22% over the last six months. I really want to get that figure to around 22%
Fred Weiss
Merchant Member
Not likely. The last figures I saw for gross annual sales had the median amount at about $70K. That means half the sign companies out there gross less than $70K and half gross more. To have enough gross profits to have 19% to 22% available for reinvestment or discretionary use will, of course, differ with overhead and other issues, but probably isn't reached until the business is in the low six figures for annual gross sales.
jiarby
New Member
We try to average 30% across the whole business... but we are just now putting a new accounting package (QB2008 Manufacturing/Wholesale) in to get a less anecdotal view of the financial health of the store. Right now I look at the bank balance every month to see if it is more than last month or not!
If you are only making 20% on 70k then you may as well go work at home depot!
If you are only making 20% on 70k then you may as well go work at home depot!
Fred Weiss
Merchant Member
Just to clarify my terminology ... gross sales is total sales revenues. Gross profit is gross sales minus materials and other direct expenses of completing the jobs. Net profit is gross profit minus overhead and all other expenses other than those deducted as materials and direct expenses of completing the job. How those costs are assigned is different for everyone.
In my business, I have historically averaged 80% to 90% gross profit. Overhead, labor, salaries, depreciation, etc. has typically averaged 50% to 60% of gross sales for a commercially located operation. Home based would be more like 25% to 40% of gross sales.
Which is the long way around of saying that a commercially based operation, if they are doing enough in gross sales and paying yourself a livable salary as part of your overhead, can expect to net between 10% and 25% of gross sales. The median $70K operation is probably working from home with no employees and little or no insurance. Deducting 20% ($14,000) for materials and 25% ($17,500) for overhead, you are left with an income of $38,500. Some individuals may have other income and be able to earmark part of that for investment or retirement ... others may need to live on it.
My point is that discussions like this can be very confusing to follow because how you state things is very much related to how you approach accounting in your business and the nature of your business as a whole.
Pat Whatley
New Member
You think? I know what you're talking about in that last post of yours...and I'm still confused. :Big Laugh
OldPaint
New Member
well back when .....you dont want to hear this do yas?????
PAINT, BRUSHES and talent....i would average at least 70-90% PROFIT.....
yep that was before, vinyl, inks, printers, cutters, and all the stuff you BUY to make a 15% bottom line....
McDONALDS thinkin...more volume lower price and i can make more money...
well i liked it better when i wasnt WORKIN FOR THE SIGN SUPPLIERS!!!!!!!
i did my own bookeekeeping and go back to BEFORE PLOTTER/COMPUTER/VINLY...my yearly outlay for supplies(for paint, brushes, turps, rags,cleaners)never was more then couple hundred a year. that doesnt cover MDO, ALUM, BANNER MATERIAL ECT. that was a seperate listing and these was sold and cost was covered for them. yep profit aint here.....and goin down hill more every year..........
PAINT, BRUSHES and talent....i would average at least 70-90% PROFIT.....
yep that was before, vinyl, inks, printers, cutters, and all the stuff you BUY to make a 15% bottom line....
McDONALDS thinkin...more volume lower price and i can make more money...
well i liked it better when i wasnt WORKIN FOR THE SIGN SUPPLIERS!!!!!!!
i did my own bookeekeeping and go back to BEFORE PLOTTER/COMPUTER/VINLY...my yearly outlay for supplies(for paint, brushes, turps, rags,cleaners)never was more then couple hundred a year. that doesnt cover MDO, ALUM, BANNER MATERIAL ECT. that was a seperate listing and these was sold and cost was covered for them. yep profit aint here.....and goin down hill more every year..........
D
DARLAK
Guest
come on OP, my dad's been telling me for 39 years how life was so much better back in the day...... time marches on, i'm sure i'll tell my son the same thing and he will still prosper in his time
Pat Whatley
New Member
How are you gonna LEGALLY make 90% profit when you're paying 18%-22% in taxes?