# Most Profitable Trade?



## Nathan (Jul 21, 2003)

OK, this is probably going to be a debated topic but… what trade do you think is the most profitable? Assuming this is a small to medium size business and not a huge commercial business.


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## hatchet (Oct 27, 2003)

Very difficult question. Overall I think most trades are pretty close to the same profit - which is typically around 10-15%.
Maybe if we look at volume versus profit - directly relating to amount of profit per annum. Then I would probably say mechanical or electrical.
But if we look at schedule versus profit then I would say roofing or framing. In and out quick - on to the next one.


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## Floorwizard (Sep 24, 2003)

I remember when I was landscaping many years ago, and when we were finished with a job, we would go to a recycling plant, and pay them to dump our stuff. Then they would turn around and use that to make barkdust and such, then sell it. Money from coming in, and money from going out, not bad I thought.


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## Grumpy (Oct 8, 2003)

I agree with hatchet, any industry that isn't brand new is saturated with compitition. Except industries that collude, 10-15% is the max an average consumer would allow.

Any brand new industry usually starts with high profits and as compition enters the industry the profits dwindle to about 10-15%.


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## Speedy Petey (Sep 30, 2003)

All I know is one of the local plumbers in town has a $150,000 boat. And wait 'till you see his farmstead.


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## Mark (Oct 17, 2003)

I would have to say welders and or pipefitters..... up here they seem to make the big bucks and most end up with the winters off.


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## Grumpy (Oct 8, 2003)

I know roofers with million dollar homes, farms in neighboring states, boats and condos in florida... You name it. I call them Macro Roofers. They install at least 10 roofs a day. They have a few gutter crews and various other areas of work like chimney rebuilding.

They have zero field employees. All laborers are subs. I know their profit margin, and know it is pretty much in line for the industry. They just have a huge marketing budget and nearly 20 sales men. Now multiply their profit per job times ten and thats what they make in a day.


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## ProWallGuy (Oct 17, 2003)

> what trade do you think is the most profitable?


CEO of a Fortune 500 company run into the ground.

I want their severence package.


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## Guest (Mar 19, 2004)

Custom home builder


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## hatchet (Oct 27, 2003)

You might think that custom home building is highly profitable - but not really. Look at DR Horton (#1 on top 100 home builders) - 7 billion in gross revenue with only 443 million net = 6%. In a competitive market the larger multi-million dollar homes have a smaller profit margin (percentage wise) compared to a $200,000 home. I see the same thing in large commercial projects - 1million projects gets around 6-7% while 130million gets around 3%. Yes DR Horton is not really a true custom home builder but the revenue cycles closely relate.


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## Floorwizard (Sep 24, 2003)

o.k. I vote a madame.

Like Heidi Fleise


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## Glasshousebltr (Feb 9, 2004)

for a year or so in the 80s I picked up installing core pannel padio rooms, it paid 1.00 per surface sq ft. 2 men could build 1000 to 1400 surface sq ft a day. At the time I had three crews, it turned out to be most profitable.

Bob


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## hatchet (Oct 27, 2003)

LOL @ Florcraft. Could you get me a financial statement and maybe some samples?


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## Glasshousebltr (Feb 9, 2004)

We'll have to start calling him Pimp Flor Daddy.

Bob


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## Grumpy (Oct 8, 2003)

unregistered said custom home builder and I will disagree because builders who do semi custom homes and sell them make more money with less headache. Custom home builders have to do everything to the customers detail and it's the customers home, not theirs!

I know guys that build homes, do 2-3 per year. Slap the thing together but don't finish paint or install any fixtures. Whent hey sell the home they sell it with a 20k allowance for finishings and they profit about 50k per home on average. On time the builder did 150k on a home but he get really lucky that time. They don't have to deal with any customers until the very end and the only shcedule they are on is the schedule they can afford. One of these guys doesn't even need construction loans anymore. He buys the trear down house with a conventional mortgage then tears it down and pays out of pocket to put up the new house. This is how he gets around the incredily high construction loan interest rates.


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## Glasshousebltr (Feb 9, 2004)

Wow, I'll bet the bank starts sweating bullets when he starts his demolition.

Bob


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