Profit Margin

[BlueRidgeMark]

-$72 two guys, 4 hrs of labor ($8/hr and $10/hr)

This is either bad math or illegal employment practices. $8 per hour paid to an employee will cost you in the neighborhood of more than $9 per hour once you add in all the taxes the employer is required to pay.


That's IF you don't have any employee benefits like paid holidays, vacations, or health insurance.

Those all add to your overhead, and unless you are operating illegally, they DO come out of your pocket.

BTW, are you guys talking about a profit MARGIN or a MARKUP? They are not the same.

If your expenses are 1,000 and you charge $1,300, you have a 30% MARKUP. Cost * markup = price.

But your MARGIN is 23%. Margin = (Price - Cost)/Price.

At least according to GAAP.


Poor accounting practice has killed a lot of small businesses.

 

[Newfie]

This is either bad math or illegal employment practices. $8 per hour paid to an employee will cost you in the neighborhood of more than $9 per hour once you add in all the taxes the employer is required to pay.

BRMark, treeminaturd is a tard who recruits at burger joints. Every here the phrase "Too stupid to work at BK"? Well they work for the treeturd.

 

[BoesTreeService]

Question for Treeminator

Where do I get in line for free equipment, advertising and insurance?

 

[Timbrcutr]

I figure all my overhead plus 30% and that is easy at time's and impossible at time's where I live in Washington state you hear the phrase feast or famine alot. I know guys that have long term accounts that do well one charges 200 an hour for a 40 an hour climber and he's known for chasing you down as your leaving and throwing 700 to 1000 bucks at ya for a bonus. Speed efficiency safety and employees that work well together is all I know to keep going. Alway's do a little more for customers and keep your guys paid well and paid weekly and have at least 2 trucks 2 chippers a good stump grinder and lots of connections.