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 is not the net profit. It's the profit before the business owners costs are taken out.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?"
This level of profitability is very far away from the situation of a typical Irish company with turnover of 500K.
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.
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.
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