Share this challenge with your office staff
and company leaders to find out their
thoughts on how to handle this situation.
You can download the challenge at
http://ie3media.com/biz08
By Tom Grandy
How Much Profit
Should You Be Making?
ow much net profit (after everything is paid
for) should the company be making? If you
look at every trade journal and/or printed data they all say
the same thing. The “average” contractor makes a 3% net
profit. Well that simply is not right. What happens is this: when a company makes
a significant profit the accountant gets involved. By the time he or she has finished
massaging the numbers the net profit equals about 3%, because that is what
the company wants to pay taxes on. Now for the real question, what net profit
percentage should the installation and service departments really be making?
Looking for ACCA’s answer?
Author’s Notes
Check www.ie3media.com on May 1 for the
answer to this issue’s Business Challenge.
Tom Grandy is president of Grandy & Associates,
producers of the well-known “Business Boot Camp” series.
ACCA
DuctWheel
for iPad!
50
50_BizChallenge.indd 50
DuctWheel is a new version of ACCA’s popular duct sizing
slide rule. AND it’s the only duct sizing app, exclusively for iPad that
is powered by ACCA’s Manual D. For more information on DuctWheel
and all of ACCA’s apps, visit www.acca.org/acca/mobile-apps.
IE3
|
March 2013
2/11/13 12:49 PM