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How much profit?


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I also tend to lean towards Clyde's answer...but I can tell you from experience in the construction industry, if you're currently bidding anything with profit margins any higher than 4%, you ain't gettin' the job. Public work is generally going somewhere in the 2 1/2 - 3% range, and private work is going at 3 - 4%.

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I also tend to lean towards Clyde's answer...but I can tell you from experience in the construction industry, if you're currently bidding anything with profit margins any higher than 4%, you ain't gettin' the job. Public work is generally going somewhere in the 2 1/2 - 3% range, and private work is going at 3 - 4%.

 

Your example is why I lean towards "no limit." Your market and your skills and your ability to run your business will ultimately determine your profit. Software companies look at a much higher gross and net margin. Different product. Different expenses. Oil will be very profitable because of demand around the world vs supply.

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Your example is why I lean towards "no limit." Your market and your skills and your ability to run your business will ultimately determine your profit. Software companies look at a much higher gross and net margin. Different product. Different expenses. Oil will be very profitable because of demand around the world vs supply.

 

Dead on.

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Simple question. How much profit do you think is fair for a company to make? And I am not talking about $, I am talking about %.

 

Now if you're asking what I think a "fair" amount of profit is in terms of "How much profit can you make before you get to the point that you're taking advantage of someone?", I would say that there's a certain margin of ambivalence inherent to the answer. Still I think that in general, once you get up around or above 20% profit - PURE PROFIT - on pretty much any product or service that you're providing, in all likelihood you've got some larceny in your heart.

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Now if you're asking what I think a "fair" amount of profit is in terms of "How much profit can you make before you get to the point that you're taking advantage of someone?", I would say that there's a certain margin of ambivalence inherent to the answer. Still I think that in general, once you get up around or above 20% profit - PURE PROFIT - on pretty much any product or service that you're providing, in all likelihood you've got some larceny in your heart.

 

I think that would depend largely on what type of business you are running. I can think of a couple examples where 20% profit would not seem that great. JMO

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I think that would depend largely on what type of business you are running. I can think of a couple examples where 20% profit would not seem that great. JMO

 

Please keep in mind I am talking about net operating result. Not just gross margin.

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