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Double Glazing Blogger: Margins

Thursday, May 13, 2010

Margins

What is a good amount of profit to make per window or door? I've heard very differing estimates recently, some very low and some quite high. So I'm putting the question out there, what is the right margin to put on a window or door?

I'm not expecting many responses, unless they are anonymous ones, this is me being a bit cheeky!

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posted by Double Glazing Blogger at 4:02 PM

2 Comments:

Anonymous Anonymous said...

Consider this.

UK industry charges 10-15% below the true market value of it's products and services.

At a time when cheap as chips is all the customer is looking at and every company is competing to do more for less we loose sight of what that margin is actually for. Yes we want a profit and cash in our pockets today, but more important than that we need cash for product development, to cover guarantees and remedial works, to invest in training, extra staff, better equipment etc.
A low margin as opposed to a low cost industry must by it's very nature fail in the medium to long term term, and with no cash reserves and little banking support the medium term is now very short indeed.

May 17, 2010 at 8:52 AM  
Blogger Double Glazing Blogger said...

I could not have put that better. Some tactics by other companies makes me tear my hair out. I've had some tell me that they'll beat other particular companies whatever the cost. But the problem is if they're their main competitors, can you imagine all the profit they are giving away. We've had situations where our competitors are weeping their prices, seeminly taking off all profits and comission, just to make sure they wino the job. But what good is it if they don't make any money? And like you say, in the medium to long term, survival isn't likely.

May 17, 2010 at 9:08 AM  

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