Josh Bucio
👤 PersonAppearances Over Time
Podcast Appearances
And so then it goes back to, OK, what am I charging on the top line basis? Because like right now, from a percentage standpoint, you guys are charging 100 percent. You have 58 percent cogs. Right. Right. which means you have 42% gross margin, okay?
And so then it goes back to, OK, what am I charging on the top line basis? Because like right now, from a percentage standpoint, you guys are charging 100 percent. You have 58 percent cogs. Right. Right. which means you have 42% gross margin, okay?
If I have 42% gross margin and I go and I allocate 20% to sales and marketing, and then on top of that, I see you guys have like 10 to 15% in everything else, right? What does that leave us with? That only gives us 7% net margin at the end of the Right. And, you know, which... For a traditional construction business, that's very accurate, like 7%.
If I have 42% gross margin and I go and I allocate 20% to sales and marketing, and then on top of that, I see you guys have like 10 to 15% in everything else, right? What does that leave us with? That only gives us 7% net margin at the end of the Right. And, you know, which... For a traditional construction business, that's very accurate, like 7%.
If I have 42% gross margin and I go and I allocate 20% to sales and marketing, and then on top of that, I see you guys have like 10 to 15% in everything else, right? What does that leave us with? That only gives us 7% net margin at the end of the Right. And, you know, which... For a traditional construction business, that's very accurate, like 7%.
The reason why you guys have been able to maintain a higher percentage is because one, Carter's doing all the sales, right? And you're not paying a big sales team and everything else. And so it's like, okay, how do we restructure this that allows us to still hit those targets of 20%? And so what do I need to do to my top line numbers to be able to be priced in. Right. Yeah.
The reason why you guys have been able to maintain a higher percentage is because one, Carter's doing all the sales, right? And you're not paying a big sales team and everything else. And so it's like, okay, how do we restructure this that allows us to still hit those targets of 20%? And so what do I need to do to my top line numbers to be able to be priced in. Right. Yeah.
The reason why you guys have been able to maintain a higher percentage is because one, Carter's doing all the sales, right? And you're not paying a big sales team and everything else. And so it's like, okay, how do we restructure this that allows us to still hit those targets of 20%? And so what do I need to do to my top line numbers to be able to be priced in. Right. Yeah.
Yeah, so you're referring to more like utilization, right? Like utilizing your fixed assets or your fixed labor, which is like you got this management in place or whatnot.
Yeah, so you're referring to more like utilization, right? Like utilizing your fixed assets or your fixed labor, which is like you got this management in place or whatnot.
Yeah, so you're referring to more like utilization, right? Like utilizing your fixed assets or your fixed labor, which is like you got this management in place or whatnot.
And that's a key thing for anybody to understand that's watching this or listening to this is just how valuable an additional dollar is to the business owner versus the customer, right? Like using this example, coming back over here to the whiteboard, where if it was $100 and you're taking home 7% at the end of the day, if you go and you charge the customer 100%,
And that's a key thing for anybody to understand that's watching this or listening to this is just how valuable an additional dollar is to the business owner versus the customer, right? Like using this example, coming back over here to the whiteboard, where if it was $100 and you're taking home 7% at the end of the day, if you go and you charge the customer 100%,
And that's a key thing for anybody to understand that's watching this or listening to this is just how valuable an additional dollar is to the business owner versus the customer, right? Like using this example, coming back over here to the whiteboard, where if it was $100 and you're taking home 7% at the end of the day, if you go and you charge the customer 100%,
101, you've increased their price by 1%, right? And your 1% goes directly to the bottom line, which has increased your net profit by 12%, right? So I mean, it's just such a drastic difference.
101, you've increased their price by 1%, right? And your 1% goes directly to the bottom line, which has increased your net profit by 12%, right? So I mean, it's just such a drastic difference.
101, you've increased their price by 1%, right? And your 1% goes directly to the bottom line, which has increased your net profit by 12%, right? So I mean, it's just such a drastic difference.
And this goes to one of the core strategies and principles that we always teach that you don't have a true competitor. A lot of times when we go and we look at the marketplace, we try pricing according to the competition out there. We make poor decisions for our business versus actually doing what's best for our business, backing it up with competition.
And this goes to one of the core strategies and principles that we always teach that you don't have a true competitor. A lot of times when we go and we look at the marketplace, we try pricing according to the competition out there. We make poor decisions for our business versus actually doing what's best for our business, backing it up with competition.
And this goes to one of the core strategies and principles that we always teach that you don't have a true competitor. A lot of times when we go and we look at the marketplace, we try pricing according to the competition out there. We make poor decisions for our business versus actually doing what's best for our business, backing it up with competition.