Posted By:
leonI certainly agree with you on some of what you say...but "hugely profitable" is a relative term. Let's say they do 50 million a year in sales...which is probably close. If they make 23% gross margin (again, probably close)...then the total GP is $11,500,000 ...which is a lot of money but then you have to take out expenses. All of this is hypothetical but I am sure somewhere in the ballpark, relatively speaking. Let's say they have 30 employees....and their payroll is 75k ea...again, some high and some low....that's a 2.25 million dollar payroll. That's 9.25 million left over. Let's say they have another 3 million in total expenses...with advertising, printing, mortgage, etc...that again could be in the ballpark, maybe low. So now we have around 6 million a year as a net profit, before taxes which would make them very profitable but not like ExxonMobil or Wal-Mart. In the long run the market will dictate a lot of what is done. As I said before I will just factor in the extra percentage when bidding. best regards...your money grubbing Wh***
edited for spelling but I still am no English major....