Trade & Business Guides

Being good on the tools is only half the job. You have to know how to quote, manage cash flow, and stay compliant.

Compliance

The Golden Rule of Margins

Margin is not markup. If your materials and labor cost $10,000, and you add 20% ($2,000), your price is $12,000. Your profit margin is $2,000 / $12,000 = 16.6%.

If you want a 20% margin, you divide your costs by 0.8. $10,000 / 0.8 = $12,500.

Many businesses go broke because they markup by 20% but have overheads of 22%.

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