Net sales 2007?

[Doug Cox]

Alright you can answer if you want. I was just wondering what everyone's net sales for services provided for 2007 were? I do this full-time, but I was just trying to get a feel for my potential possibility's in the future. I don't have a 5 year plan, but was just wondering what other o/o's and other small companies are doing?

I believe my net is around 50%. I don't whether this is good or bad?

 

[Lee Stockwell]

You've been in biz 25 years?

 

[Doug Cox]

So, this is bad? Really, 50% profit is bad?

 

[Lee Stockwell]

I usually give a newbie 3-5 years to get a handle on his numbers.

"Net sales" usually means total sales less the cost of sales, typically limited to marketing costs (including sales labor). Other business expenses are usually listed as separate line items.

Sometimes that expression is misapplied...like to "profit".

more...

Thanks,
Lee

PS a cut and paste:"net sales : Gross sales less returns and allowances, freight out, and cash discounts allowed."

 

[Doug Cox]

Yes or no will suffice. Is 50% NET PROFIT good or bad. I said NET PROFIT not NET SALES whether that changes anything. Obviously I'm doing something right being around for 25+ yrs. Granted I have an accountant and don't really involve myself in the technical stuff.

 

[Lee Stockwell]

Your "Subject" line and first post said "net sales".

If you show a net profit of over 50% you have been given poor accounting and tax advice.

Is that "profit" after paying your own salary and perks?

 

[Doug Cox]

Its after everything

 

[Lee Stockwell]

Something is VERY wrong if your taxable net profit (as shown on Schedule C Form 1040) is fifty percent of sales.

However, THANK YOU for paying extra taxes in our behalf!

Lee

 

[ronbeatty]

Doug, Last year we grossed $310,000.00. Including my salary with the profit from our K1, from our corp my net was 150,000.00. I would say that very few businesses are capable of that kind of return on their investment. Congratulations on your success and best wishes for "08".

 

[Lee Stockwell]

You saying that after your salary your corporate net was still near 50% of sales?

Incredible...

Fire your tax advisor.

 

[The Preacher]

Lee learned all this at Murry State, BTW!!

Rawknee on Danny's computer

 

[Doug Cox]

Lee- After looking at my schedule C my net was higher than I said But I think you are correct that that figure is before my salary and not after. Sorry for the mixup.