Another interesting article about an art related business
- Thread starter Rob Markoff
- Start date
Artrageous
PFG, Picture Framing God
Always great to see someone succeeding in a business.
Am I just jaded to think that a business with 12 employees and 200 accounts should have annual revenue above $1.2 million?
Am I just jaded to think that a business with 12 employees and 200 accounts should have annual revenue above $1.2 million?
Baer Charlton
SPFG, Supreme Picture Framing God
I was thinking that the guy only owns 20% of the company.... and yet he's taking
home $94K.... ?
What's that say about the 12 employees? Sub min?
10,000 sq ft in San Diego can't be cheap.... so it that $1.2 after the overhead?
Nice to see something about someone succeeding.... but the numbers in
my mind just don't add up.
I, for one... know that shipping is now killing me. I just sent a frame job to Florida....
It used to be that the shipping cost was less than making the crate.....
Not this time.
home $94K.... ?
What's that say about the 12 employees? Sub min?
10,000 sq ft in San Diego can't be cheap.... so it that $1.2 after the overhead?
Nice to see something about someone succeeding.... but the numbers in
my mind just don't add up.
I, for one... know that shipping is now killing me. I just sent a frame job to Florida....
It used to be that the shipping cost was less than making the crate.....
Not this time.
First off, I'm suspect of personal information (salary) posted on the internet. I always expect the number is A) inflated because of pride, or B) understated because they don't want people to know how much they're getting ripped off.
I know one thing, even after being in business for 30 years (6 as employee, 24 as owner) I would like to be making that ratio of $94k/1.2 mil... The fact that he's only 20% owner has nothing to do with his salary, assuming the other owners are happy with the level of profit he is generating for them.
1.2 mil per 12 employees does sound low, but, if they are not actually billing for freight it's basically a service business so it's feasible. 11 employees at $30k each plus his $94 = $425k per year labor, that leaves $775k per year for crating materials, operating costs and profit.
I know one thing, even after being in business for 30 years (6 as employee, 24 as owner) I would like to be making that ratio of $94k/1.2 mil... The fact that he's only 20% owner has nothing to do with his salary, assuming the other owners are happy with the level of profit he is generating for them.
1.2 mil per 12 employees does sound low, but, if they are not actually billing for freight it's basically a service business so it's feasible. 11 employees at $30k each plus his $94 = $425k per year labor, that leaves $775k per year for crating materials, operating costs and profit.
Artrageous
PFG, Picture Framing God
David, if you remove freight shipping from the equation, then although the numbers seem to work, it stills seems like a low annual revenue for a business that needs 12 employees.
I deal with a few shippers and they say the most profitable part of their business is the freight consolidation. It's the one part where they can negotiate prices. The handling portion is where all their fixed costs are incurred.
I deal with a few shippers and they say the most profitable part of their business is the freight consolidation. It's the one part where they can negotiate prices. The handling portion is where all their fixed costs are incurred.