FreeLists / webproducers / [webproducers] Re: Gross Margin

[m o r r y <codecode@xxxxxxxxxxxx>]

I've been away and just got this e-mail.  I didn't see any responses to
this and I'm not sure if the questions was ultimately about how much to
charge for services or taking an existing charge and finding out how much
profit you actually made (gross profit).

If the later I think if you hired 10 different accountants you would get
10 different answers. There are a bunch of things people do with their
books and especially in service industries. With a product you just figure
cost of goods taken away from sale price and you got your gross profit.
However, in a service business it's always trickier. What is the cost of
goods? You're not just reselling a website that exists or a prepackaged
software you're custom making it so that's a little more like
manufacturing.  I gues sone could just figure gross sale price and take
away labor costs and direct costs.  That would be  really simple way to
figure out gross profit.

morry

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On Mon, 10 Sep 2001, Carrie Giddings wrote:

>
>
> Question:  What is the best way to figure out gross margin on a project?
>
> Thanks!
> Carrie
>
> __________________________________________________________________________
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> Questions and comments are welcome just e-mail me, morry@xxxxxxxxxxxxxxxx
>

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