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Understanding Gross Profit Margin in Painting Businesses

May 26, 20231 min read

May 26, 2023

Season 1, Episode 2

Description:

In this enlightening episode, hosts Daniel and Richard explore the critical role of gross profit margin as a key indicator of a painting business's competitive edge, inspired by insights from Warren Buffett. The episode aims to educate business owners about gross profit margin, how to calculate it, and its implications. The hosts articulate that businesses boasting a gross profit margin over 40% are considered competitively advantaged, and they elucidate the calculation of gross profit and its subsequent conversion into a gross profit margin as a percentage of revenue.

The hosts dive into the real-world implications, indicating that a 40% gross profit margin is the industry benchmark for painting businesses. They urge listeners to evaluate their business's gross profit margin, consider the implications of their standing relative to the 40% benchmark, and provide actionable tips to enhance their margin.

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Daniel Honan

Daniel Honan is a former painting business owner and military intelligence officer with an MBA and a degree in Accounting. He's been in your shoes. Everything from cold calling for estimates, in-home consults, managing crews, to running payroll. With his accounting, intel, and painting industry experience, he's put together a back-office system to help painting contractors crush it by helping them know their numbers and what they mean, save big in taxes, and streamline and automate their processes to save time and money.

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blog image

Understanding Gross Profit Margin in Painting Businesses

May 26, 20231 min read

May 26, 2023

Season 1, Episode 2

Description:

In this enlightening episode, hosts Daniel and Richard explore the critical role of gross profit margin as a key indicator of a painting business's competitive edge, inspired by insights from Warren Buffett. The episode aims to educate business owners about gross profit margin, how to calculate it, and its implications. The hosts articulate that businesses boasting a gross profit margin over 40% are considered competitively advantaged, and they elucidate the calculation of gross profit and its subsequent conversion into a gross profit margin as a percentage of revenue.

The hosts dive into the real-world implications, indicating that a 40% gross profit margin is the industry benchmark for painting businesses. They urge listeners to evaluate their business's gross profit margin, consider the implications of their standing relative to the 40% benchmark, and provide actionable tips to enhance their margin.

Subscribe to the Profitable Painter Podcast

blog author image

Daniel Honan

Daniel Honan is a former painting business owner and military intelligence officer with an MBA and a degree in Accounting. He's been in your shoes. Everything from cold calling for estimates, in-home consults, managing crews, to running payroll. With his accounting, intel, and painting industry experience, he's put together a back-office system to help painting contractors crush it by helping them know their numbers and what they mean, save big in taxes, and streamline and automate their processes to save time and money.

Back to Blog

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