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Painting Business Owners: How we achieved record-breaking gross profit margin! #BusinessScaling

Name: Painting Business Owners: How we achieved record-breaking gross profit margin! #BusinessScaling
Uploaded: 2024-07-24T13:15:01+00:00
Duration: 40 s
Channel: Daniel Honan
Description: Two painting business owners explain how they hit 45-51% gross profit margins, well above the 40% industry average. They deliberately kept their…

24 Jul 2024 · 1 min

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Two painting business owners explain how they hit 45-51% gross profit margins, well above the 40% industry average. They deliberately kept their experienced field staff last year despite higher costs, betting that seasoned workers would execute better projects and boost profits the next year. That strategy paid off.

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40% seems to be kind of the average gross profit margin using the same apples-to-apples comparison. So having a 45% or 51% gross profit is far above average. It's a very good year.
Last year we made a strategic decision not to cut our field staff when it came to the production team. That was a carry that the ownership group looked in the mirror and said, yeah, we're going to carry that expense. Really like that to pay off next year with a higher margin, right? Because now we have all seasoned veterans in the field managing these projects. I don't want to hear about these issues of this is a rookie mistake. We lost a couple. You either earn or you learn. We're done learning. Now it's time to earn. And it was a good year last year too, but I think the payoff this year is some of those overhead decisions that we made last year going in with a carry mindset.