how much do you earn? sign related

[Dave Bruce]

I was considering asking what turnover do you have, but just related to one/two man bands.

With your survey we don’t know if the voter has a huge company or is just single handed, so it is going to vary greatly, and very upsetting for me at the bottom end of the scale 🙁

Dave

[Peter Normington]

Dave, I thought about asking about turn over, but t/o dosnt relate to profitability. Eddie Stobart (company, not the man) nets a meagre 5% net on a huge turnover.
Bottom line is what you put in yer pocket.
If you are happy, and dont worry about spending a few quid, have a roof over your head, your health, food and drink thats all you need.

Sorry if you feel upset, The poll was just out of curiosity.

Peter

[Shane Drew]

It is interesting that the poll, although no extensive in response, already shows, what I would think, is the mix on the site.

Certainly a lot here that do the sign business as a sideline, but a lot that have large businesses too.

Of course, my $au dollar value is 40p to $1au at the moment, so my answer has given you a false reading, sorry. Answered before I thought about it.

Cheers

[Dave Bruce]

Peter, that was a light hearted ‘upset’ so don’t worry.

I thought turnover would show generally what was achievable by a couple, in terms of how much work one/two can do in a year. I know this can vary too, but we are just looking out of interest.

I know what you say about turnover, I have an aquaintance who had a car restoration company turning over £1million but he took home £10,000/yr, he gave that up for a less stressful job.

The thng with profit is there are so many variables, like I could be doing the same amount of work/turnover as Hugh for example, but he doesn’t have the overheads I have, so he takes more money home (lucky devil).

Not picking at anythng here, I am more interested in what amount of work is possible by a couple/individual over the year, I guess I am searching for an answer to why I am working my socks off and not earning a rewarding income. My prices are compatable with others in my area, my overheads are not massive, yet I have enough work for the next two months easy, and quoting for another month. To be honest, I am burning out, and wondering how I would earn a living by cutting my hours, or handing over my income to take on an employee.

Nuff said
Dave

[John Childs]

Dave,

I can see that you have given this some thought but the truth is, as I am sure you are aware, that if you are "working your socks off and not earning a rewarding income" then you have got something wrong.

Without knowing anything about your business I would say that if you have enough work for the next two months then you are not charging enough. Why else would your customers be prepared to wait that long to get a job done unless there was a very good reason so to do? Mine wouldn’t.

In your position I would consider increasing prices slightly and if you lose a few jobs then it doesn’t matter if the higher prices on the jobs you do get make up for it. If, by doing that, your lead time drops to one month, then where is the problem? Same money – less stress.

To use your example, if Hugh is taking home more than you from the same turnover then he has got it right and you have got it wrong, and need to address the cause.

At the end of the day – profit is reality while turnover is only vanity.

I know it’s a difficult balancing act and hope you get it resolved.

[Dave Bruce]

Thanks John, yep prices have been increased, the reason people wait is I come well recommended, the other sign shop doesn’t so where else do they go. Also here on the west coast that time scale is normal, if not quick!

I used to be the production manager at the other sign shop so I know what the financial situation was there too, I was taking home more than the owner was, and that was after 15 years building up the business. They were also told to increase prices, they did, several times, then people went out of the area to get work done. I appreciate that I am in an area where wages are low, rents are high but, I don’t want to end up in hospital trying to survive 😕

Time will tell how things pan out, at least I have a good reputation

Dave

[Shane Drew]

I am in the same boat Dave. I have come to the conclusion it is the small business syndrome.

I work my butt off, am booked out 3 weeks in advance, but people usually wait.

My dad says I must be too cheap, but I am always monitoring what prices are, I do lose the odd quote, and I am usually in the ball park as far as price goes, but they choose the other crowd, usually coz they can do it quicker.

I don’t want to employ anyone else, simply coz 90% of my customers keep coming back to me because they like the personal service.

I have walked away from a few contracts in the last year because they were too much trouble. I have become a bit more selective, but now I am worried that I may not have a big enough spread.

John is right tho, turnover is one thing, but profit is more important. When I had all my staff, I was doing huge turnover, but some of the guys took home more than me, and worked way less hours. I was always chasing work to pay the wages, and I sometimes had to forgo profit just to get money in the bank

Now I have a smaller turnover, but I have a better bottom line, certainly more money to spend on me.

But it is difficult. I’d rather be where I am now tho, than employing staff, with its associated dramas. I am working on having weekends off now. That is another benefit of being in demand. I am concentrating on making the business work for me, not me working for the business. It is a long haul but I can see daylight… I think… especially if I squint 😉

[Dave Bruce]

Thanks for the words Shane.

I realise that turnover is not that important but I mentioned it above as it is a measure of how much work is achievable in the year by say a couple of people. I am not really interested in what others are earning, more in how much work they can achieve in a year, and the only way to show that would be through turnover (I think).

Anyway I must get back to the grind, been missing alot on here lately, although I got a chance last night to catch up on your jokes :lol1:

Cheers

Dave

[Stephen Morriss]

Mines on the low end but I’ve only been going for 3 years or so and I’m still investing profits back into buying equipment etc.

Steve

[Shane Drew]

quote Stephen Morriss:

Mines on the low end but I’ve only been going for 3 years or so and I’m still investing profits back into buying equipment etc.

Steve

Me too Steve… I’ve only been going 12 years tho 😕

[John Childs]

Steve,

Doesn’t matter mate. Profit is profit whether you invest it in signmaking equipment or spend it down the pub. Your drawings from your business are a completely different thing.

[Stephen Morriss]

quote John Childs:

Steve,

Doesn’t matter mate. Profit is profit whether you invest it in signmaking equipment or spend it down the pub. Your drawings from your business are a completely different thing.

I know John, my wife’s pretty good at the financial side of things.
Drawings can be hard to get your head around at first but when you do it’s really simple to understand.

Steve