Are Irish companies too profitable?

Protocol

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The net profit is after my costs such as salary,pension, company car of approx 55K per annum, so taking these costs out of the business, the profit would be approx 200K

It is in the service industry, but I have created a business that can operate without me. I have a good team capable of running the business.

200k net profit on 500k turnover, 40% net profit margin......., after paying salaries, and paying for a 55k car for the owner..........

How or why are profits so high in Ireland?

Is this part of the reason why the price level here is 20% above the EU average price level, even though our wages are not that high?

I have seen several people on AAM ask what to do with such high profits.........

It seems that either selling prices are too high, not enough competition, or else wages paid are too low..........

Do we need a new thread:

"Is it time for profit falls in Ireland?"
 
Agreed Steven......

A little begrudgery, perhaps?

For clarity, Wicklow Gael did not say he purchased a €55k car as Protocol erroneously records.
 
200k net profit on 500k turnover, 40% net profit margin......., after paying salaries, and paying for a 55k car for the owner..........

How or why are profits so high in Ireland?

Is this part of the reason why the price level here is 20% above the EU average price level, even though our wages are not that high?

I have seen several people on AAM ask what to do with such high profits.........

It seems that either selling prices are too high, not enough competition, or else wages paid are too low..........

Do we need a new thread:

"Is it time for profit falls in Ireland?"
200k is not the net profit. It's the profit before the business owners costs are taken out.

Also, I read it as salary, car and pension costing 55k, not the car only.
 
This level of profitability is very far away from the situation of a typical Irish company with turnover of 500K.
 
This level of profitability is very far away from the situation of a typical Irish company with turnover of 500K.

Have to agree. With margins this is you generally find that the main person could get a job elsewhere with a very significant salary and benefits elsewhere and the true profit is much lower. Salary of €120k plus car plus VHI plus stock options.
 
If a lack of competition allows too high prices and too high profits, then yes, it is a bad thing.

Of course you can't really blame this guy for the lack of competition.

It's up to other to compete away the high prices and profits.


The price level in Irl is 20% above the EU average, but our wages aren't.

Some of that must be to do with excessive margins.
 
The price level in Irl is 20% above the EU average, but our wages aren't.

Some of that must be to do with excessive margins.

I doubt that is to do with a company with a turnover of €500k and more to do with the companies with turnover in the tens/ hundreds of millions. Look at insurance costs for one...
 
The price level in Irl is 20% above the EU average, but our wages aren't.

Some of that must be to do with excessive margins.

If that was the case, Irish business would be booming. Yet all I see in many areas is dereliction and empty premises. Irish business is struggling with a cost base that wouldn't be countenanced in competitor economies.
 
Talk to any accountant and they'll tell you that for average Irish business things are really desperate. If yer man who posted the original is so smug, why doesn't he / her expand their business or knuckle down before one of their staff rob the business.
 
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