Contractor Profit

[secondcurve]

Originally Posted by Biggd

In the real world, a contractor would mark up the job 100%. Whatever your materials cost, double it. Obviously, he's not making 100% mark up with labor, insurance costs, and other expenses.
With the market today and all the work available to them I'm sure it's more now.
So, bottom line I would expect them to come away with at least 30% if not more.
I think in most service related businesses, if the owner isn't making 30% for himself, he's better off just getting a job!
Most successful business owners work 60 plus hours a week.

30% to the bottom line is not seen in many businesses. That is a huge profit. Think about it, a $3,000,000 revenue company’s owner would make $900,000! That doesn’t happen often.

[SAMIAM]

Originally Posted by secondcurve

30% to the bottom line is not seen in many businesses. That is a huge profit. Think about it, a $3,000,000 revenue company’s owner would make $900,000! That doesn’t happen often.

30% is way over the top…..most business are lucky to get 15%….20% is a home run in the restaurant business

[Biggd]

Originally Posted by SAMIAM

30% is way over the top…..most business are lucky to get 15%….20% is a home run in the restaurant business

I guess that's why a lot of restaurants don't make it, slim margins.
I had an Auto repair business, if I didn't make 30% I would have gone to work for someone else.
I worked 60 to 80 hours a week, some weeks I made over $100 an hour and others I made $10.
Some weeks, everything I touched turn to gold. Then there are other weeks, everything I touched turned to *****.

[Biggd]

Originally Posted by secondcurve

30% to the bottom line is not seen in many businesses. That is a huge profit. Think about it, a $3,000,000 revenue company’s owner would make $900,000! That doesn’t happen often.

I guess that depends if you're just a GC hiring subcontractors to do everything or a full construction company that has employees and equipment to do most of the work.
I could see just a GC subbing out everything, making 10 to 15%.