[Ian Rochester]

We don't have any margins..........we clean right to the edges.  BOOM BOOM!!! Thank you, I'm off 

[The Great One]

And what about VAT if you're earning £77000??

[Richard Cole]

Sorry Blacky

Utterly meaningless figures backed up by an overactive imagination

[Barry Livingstone]

my wee take on it

http://www.youtube.com/watch?v=Uuqry9SMjQM

[John Kelly]

If I recall my gross margin when I was carpet cleaning was around 52%.

[jasonl]

Every year it has broadly been the same for me ,

 around a third of turnover marketing,equipment, vehicles.

around  a third wages chems

around a third profit

[Hilton]

WHAT!!!!!

My binmen are on £64k , bloody public sector are coining it, I'm off to get a job.

Apart from that a lot of assumptions in there, a carpet cleaning business turning over £770,000 net would be doing what exactly gross,1.5 million ?

I don't know any CC businesses that do anything close to that and I know some
big ones..

Many CC I suspect would be quite happy with what the a binmen earn.

You've got it wrong. 770,000 was the gross.

Ok I must have read it wrong, I will rephrase it,
I don't know any carpet cleaners who do sales of £770,000

Are you doing this, if so congratulations you should be writing courses and books on how you did it.I mean that's 6 jobs a day at around 500 pounds a ticket.

You need to read the last section again. I mention 3 vans and 6 workers to pull £770,000. No sole trader could ever gross this.

Yep the questions the same based on your example, which you have not answered.

[david@zap-clean]

Be interesting to see what peoples gross margins actually are if anyones brave enough to tell us.

After 6 months trading, I'm still only pulling £100 per week out of the business, for fAgs and booze.  So it's a good job I don't smoke, and my girlfriend is loaded, but don't tell the wife.

[Dominic Carnell]

£108000 - Nett after running costs £ 43200

In this example, what has circa £3900 a month been spent on? Because £900 a week sounds like high overheads for a man in a van carpet cleaning business?

[JandS]

Your net figures aren't in sync with Tax and NI which is 28%.
You haven't knocked the personal allowance off any of the
figures.
This would have a big impact on the £25600 figure.

[Paul Moss]

Can i just say that  83.56% of all statistics are made up 

[Blacky]

£108000 - Nett after running costs £ 43200

In this example, what has circa £3900 a month been spent on? Because £900 a week sounds like high overheads for a man in a van carpet cleaning business?

Yes it is a lot, but if you wanted that annual turnover that would be the cost to you of achieving it.

[Allan Simmons]

 

Can i just say that  83.56% of all statistics are made up 

 

[*Hector*]

I disagree..
that expense is very high, especially for an established business..

I know of at least 1 other CC on here besides me, who spends very very little on advertising for a start, so that cuts that figure by a heck of a lot.......

Your post is at best a generalisation, and at worst pure fabrication.....

[Blacky]

Every year it has broadly been the same for me ,

 around a third of turnover marketing,equipment, vehicles.

around  a third wages chems
around a third profit

Perfect. A real life example that we can use.  
Jason has a 33.3% margin. He takes 33pence taxable wage for every £1 he generates. If he turns over £80000 in the year his taxable wage will be £26400. After tax and NI at 27% his take home pay is £19272.

This is not fiction. The man has told us his margin is 1 third of his turnover.

[Hilton]

So can we take it then that the example you gave at the beginning was your own, with employees and 3 vans out generating sales at £770.000,because you have not been clear on that.

 

[dan paton]

blacky why do you feel the need to type posts like this . you sound like an effing preacher but all you do is bore people . go get a life

[Doug Holloway]

Hi Guys

An intersting topic.

Jason has wages and profit, for me they are combined so that gives me 66%, assuming a third for  marketing, when in reality about 20 %, so 80% profit.

Cheers

Doug

[peter maybury]

It is a stupid post really because true profit is net profit and there are many other things to take into account other than wages. Blacky I do not think understands it himself. I do not know any business that will return a net profit anywhere near 80%.
Even if you are working for yourself you have to put a price on you time. Even if you chose a paltrey amount of £20 per hour and are charging £100 per hour for your time that gives you a margin of 80%. That is fine if you can get that rate per hour are willing to work for that rate an hour, do not have to travel anywhere, have no advertising costs or equipment, chemicals, run a vehicle, tax etc, etc.........
Peter
www.carpetcleanercardiff.com