woodsrider Posted April 29, 2011 Share Posted April 29, 2011 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 %. Link to comment Share on other sites More sharing options...
Clyde Posted April 29, 2011 Share Posted April 29, 2011 As much as they can. The only answer IMO. Link to comment Share on other sites More sharing options...
woodsrider Posted April 29, 2011 Author Share Posted April 29, 2011 As much as they can. Man your quick. Link to comment Share on other sites More sharing options...
Clyde Posted April 29, 2011 Share Posted April 29, 2011 Man your quick. Is there a different answer ? Link to comment Share on other sites More sharing options...
woodsrider Posted April 29, 2011 Author Share Posted April 29, 2011 Is there a different answer ? No, I mean quick on the trigger. I barely got the thread posted when you replied. Link to comment Share on other sites More sharing options...
Clyde Posted April 29, 2011 Share Posted April 29, 2011 No, I mean quick on the trigger. I barely got the thread posted when you replied. Gotcha. Again, is there a better answer than "as much as they can" and , if so, who gets to play profit czar? Link to comment Share on other sites More sharing options...
woodsrider Posted April 29, 2011 Author Share Posted April 29, 2011 Gotcha. Again, is there a better answer than "as much as they can" and , if so, who gets to play profit czar? As far as I am concerned there isn't. Link to comment Share on other sites More sharing options...
75center Posted April 29, 2011 Share Posted April 29, 2011 Great question! I will admit I don't know the answer even though I tend to lean towards Clyde's. Should it matter what industry/product the company provides? Should it matter how much competition exists for the product? Link to comment Share on other sites More sharing options...
Colonels_Wear_Blue Posted April 29, 2011 Share Posted April 29, 2011 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%. Link to comment Share on other sites More sharing options...
Clyde Posted April 29, 2011 Share Posted April 29, 2011 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. Link to comment Share on other sites More sharing options...
Colonels_Wear_Blue Posted April 29, 2011 Share Posted April 29, 2011 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. Link to comment Share on other sites More sharing options...
Colonels_Wear_Blue Posted April 29, 2011 Share Posted April 29, 2011 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. Link to comment Share on other sites More sharing options...
lynks66 Posted April 29, 2011 Share Posted April 29, 2011 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 Link to comment Share on other sites More sharing options...
woodsrider Posted April 29, 2011 Author Share Posted April 29, 2011 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. Link to comment Share on other sites More sharing options...
Bluegrasscard Posted April 29, 2011 Share Posted April 29, 2011 As much as they can. The only answer IMO. I am on the record as completely agreeing with Clyde. I did not realize you were an Adam Smith guy. You a have been holding out! Link to comment Share on other sites More sharing options...
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