Hi
Just signed up a sole trader that runs a signage business this morning - looks like a good business and the client seems to be good at what he does, but will require help with managing and maintaing paperwork, etc.
Just wondering what sort of gross profit to expect on this type of trade.
Regards
a_m
Replies (5)
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I've just looked at a signwriter's accounts
Materials are working out at about 19% to 20% of sales, so if no employees are used, so a GP of 80% to 81% is being achieved.
Fitter = COS
A self-employed fitter would be a direct cost (but not "wages" if self-employed).
On the SA103 included in "Other Direct Costs" in my view.
PS. Do NOT put as "Sub Contract Costs" on SA103 as sign fitting is NOT within the CIS.
Making Signs
Sign manufacturing (not a signwriter) 60% GP previous owner who we acted for showed closer to 70% GP.