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Does your painting business have a competitive advantage?

Name: Does your painting business have a competitive advantage?
Uploaded: 2023-07-28T15:45:00+00:00
Duration: 31 s
Channel: Daniel Honan
Description: Warren Buffett uses a 40% gross profit margin as the benchmark for competitive advantage. The painting industry averages 40%, so if your business clears…

28 Jul 2023 · 1 min

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Warren Buffett uses a 40% gross profit margin as the benchmark for competitive advantage. The painting industry averages 40%, so if your business clears that over the past 12-24 months, you have an edge.

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Warren Buffett, we laid out those numbers. 40% or more is indicating a competitive advantage. What I've seen over the years, an average gross profit for painting businesses is around 40%. So if you want to know if you have a competitive advantage in your marketplace, look at your gross profit over, you know, the last 12, 24 months and see, do you have a 40% or higher gross profit? That, from what I've seen working with hundreds of painting businesses over the years, that's held true. The average is about 40% gross profit margin.