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Painting Contractors: Let’s talk about knowing your competitive advantage in the marketplace

Name: Painting Contractors: Let’s talk about knowing your competitive advantage in the marketplace
Uploaded: 2023-07-20T15:15:00+00:00
Duration: 31 s
Channel: Daniel Honan
Description: Painting contractors should check their gross profit margins over the past 12 to 24 months. If you're hitting 40% or higher, you have a competitive…

20 Jul 2023 · 1 min

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Painting contractors should check their gross profit margins over the past 12 to 24 months. If you're hitting 40% or higher, you have a competitive advantage. The industry average sits around 40%, so anything above that means you're outperforming most of the market.

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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.