Mike Barnhart

In the best of companies, that's operating 75 percent of your revenue typically, 70 to 75. In the worst companies, that's 90 to 100. And you're looking at what those benchmarks are. Your labor should be around 24%. Your material should be around 20%. Your office wages should be around 11%. If you can do it. Marketing, depending on the market, might be different.

In the best of companies, that's operating 75 percent of your revenue typically, 70 to 75. In the worst companies, that's 90 to 100. And you're looking at what those benchmarks are. Your labor should be around 24%. Your material should be around 20%. Your office wages should be around 11%. If you can do it. Marketing, depending on the market, might be different.

But as a total company, hopefully you're under 10%. And your vehicles, which typically range around 5%. But that's where you're targeting with a lot of those metrics. Interesting.

But as a total company, hopefully you're under 10%. And your vehicles, which typically range around 5%. But that's where you're targeting with a lot of those metrics. Interesting.

Fully burdened, including sales, commissions, installers, service, everything.

Fully burdened, including sales, commissions, installers, service, everything.

Yeah, I mean, best-ranked companies are probably around like 33.

Yeah, I mean, best-ranked companies are probably around like 33.

Yeah.

Yeah.

It's an interesting question of when is too much. When is it too much?

It's an interesting question of when is too much. When is it too much?

That's a good accountant right there.

That's a good accountant right there.

Yeah. I mean, I think there's two things that we need to be careful of going into this year. One is, if prices are changing, we have to be ahead of that. Otherwise, we'll lose ourselves because you're not pricing yourself correctly. The other one is, and I think this is our entire industry. I talk that I really value data scientists and some of the people that really understand statistics.

Yeah. I mean, I think there's two things that we need to be careful of going into this year. One is, if prices are changing, we have to be ahead of that. Otherwise, we'll lose ourselves because you're not pricing yourself correctly. The other one is, and I think this is our entire industry. I talk that I really value data scientists and some of the people that really understand statistics.

But I've yet to actually meet a company that is really heavily invested into pricing strategy. Whereas, like, you know, my background is in FP&A, and I worked for a medical distribution company for a long time. It was about $150 billion. Their goal was to get to 1% profit. They usually never got there.

But I've yet to actually meet a company that is really heavily invested into pricing strategy. Whereas, like, you know, my background is in FP&A, and I worked for a medical distribution company for a long time. It was about $150 billion. Their goal was to get to 1% profit. They usually never got there.

But they had whole pricing teams that are looking at elasticity, that are looking at ways to when they can target, like, more surge pricing, when they can do this. Like, there's, you know, Amazon's doing this. There's no reason we can't invest more into understanding what our pricing strategy should be as a business. And that's probably where you really maximize profitability.

But they had whole pricing teams that are looking at elasticity, that are looking at ways to when they can target, like, more surge pricing, when they can do this. Like, there's, you know, Amazon's doing this. There's no reason we can't invest more into understanding what our pricing strategy should be as a business. And that's probably where you really maximize profitability.