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Long Island Movers
November 18, 2020 / All
Join us for another David A. Duryee presented webinar!! On Dec. 8th, at 10AM, David will be talking to us about Profitability, how to analyze and measure it!
December 8, 2020
David A. Duryee
NY State Movers Association
It has always been important to measure and analyze profitability, but in these difficult times, it is absolutely essential. On December 8 at 10:00 am, we will host a webinar to discuss this topic in detail.
Analyzing profitability begins with the proper structuring of your income statement and the division of your expenses into direct and indirect. Revenue minus direct expenses equal gross profit, and your gross profit is where strong profitability starts. If you lose the profit battle here, you have basically lost the war.
Your gross profit in analyzed in two ways; first dollar amount and then as a percentage of revenue, which is your gross profit margin (GPM). What is your gross profit margin? More important, what should it be? There is no good information available about this, even though it is the most crucial question in strengthening your profitability. In this webinar, we will take important strides to answer that for you.
There is a form attached to this email that lists and defines direct and indirect expenses. Please take the time to fill it out with your 2019 income statement information and return it no later than November 20. Dave will then average the results by size of revenue, and for the first time in the history of the industry, you will have an indication of what these expenses are as a percent of revenue. These averages will be a vital part of the webinar on December 8. The more forms that are returned, the better will be the information, so please have your accounting manager fill this in for the benefit of all.
After carefully examining the expense percentages and three profit margins, the next task is to look at how you price jobs. What is the gross profit that you should strive to achieve on a pack job? No one knows, but there are ways to answer that question. Attached to this email is software that will allow you to calculate the gross profit margin on your pack and haul jobs. Using this form will allow you to determine the gross profit margin that you are achieving, and then you can determine what profit for which you should be striving. Please review this job costing software, both the blank form and the one with an example, and please fill in and return the income statement form no later than November 20th.
And then, make a date to join us on December 8th for what will be a groundbreaking discussion on improving your profitability in 2021. Your bottom line will be glad you did!
Please see the attached forms and instructions for completing. This information will be critical, and if everyone fills it out and sends it back our averages will be based on the biggest data base possible. Then we will be able to send the analysis back to you, and the benefit will be greater!
There is no registration fee for this webinar, and all are welcome to attend. Please register here https://www.60minutecfo.com/webinars/nysmwa-webinar-planning-99d98
I hope to see you all on Dec. 8th!!