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Painting Business Owners: Know to grow your gross profit margins! #businessscaling

Name: Painting Business Owners: Know to grow your gross profit margins! #businessscaling
Uploaded: 2024-08-07T13:15:02+00:00
Duration: 47 s
Channel: Daniel Honan
Description: This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Business Owners…

7 Aug 2024 · 1 min

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This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Business Owners: Know to grow your gross profit margins! #businessscaling" (created 2024-08-07). The excerpt is an interview-style exchange between two speakers (SPEAKER A and SPEAKER B) about target gross profit margins for a painting business. SPEAKER A asks whether there is a feasible percentage target (e.g., 45%), and SPEAKER B responds with historical and current figures—noting Paris Payne was ~35% gross margin when scaling past $1–2M, reporting ~51% gross margin year-to-date in 2023 at scale, and recommending a healthy target of ~45% (roughly 40% labor, 15% material). The content is business/advice focused on scaling profitability for painting businesses.

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For gross profit margin, let's say as a percentage of revenue, was there a gross profit margin that you targeted as feasible for your company to hit? Do you have that kind of nailed down? Do you know what that percentage is? Is it 45% of revenue?
It's kind of like the Tom Brady answer, the next one, right? Yeah. You always want to be better. You always want to squeeze and you want to say, how can we improve? Where can we pick up margin points? Fortunately, from where Paris Payne started, that was a pretty easy proposition. 'Cause we were maybe 35% gross margin when we were scaling past the $1-2 million. Plenty of points to pick up. Look at 2023, year to date, we're at 51% gross margin. That's at scale or at volume. So I think a healthy number would be 45%, so 40% labor, 15% material, 45% gross. That's a good healthy number. Anything you can pick up above and beyond that just makes things a lot easier and a lot more fun. Business is always a lot more fun when you're making money.