Broad-stroke gross profit thumbnail:
Average cost (material, labor and G&A) per panel: $3/sf x 32 sf/panel
= $96/panel
Average sales price per panel (after commissions, discounts, delivery and
other necessary sales-related costs you foresee): $9/sf times 32 sf/panel =
$288/panel
Average gross profit is $192/panel
Average number of panels in a typical home kit of panels:
72/kit
Average gross profit per home is $13,824/kit
General estimate of how many kits you feel reasonably confident you will be
able to sell in your first year: 100 kits
That's $1,382,400 in
gross profit the first year.....
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PRICE COMPARISON ON A 1,000 SQUARE-FOOT HOME |
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STANDARD |
OURS |
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WALL PANELS MATERIAL |
$3,600 |
$5,000 |
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FLOOR PANELS MATERIAL |
$5,200 |
$2,400 |
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WHOLE-HOUSE FRAMING LABOR |
$8,000 |
$2,300 |
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TOTAL |
$16,800 |
$9,700 |
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SAVINGS USING OUR PRODUCTS: $ / % |
$7,100 |
42% |
Dave says 4-27-2021:
1. $30,000 is our average sales price
2. We shoot for a 50% Gross Profit Margin. Of that we shoot for 5% of
our cost to be manufacturing cost and the rest is material. We try to
stick with a 28% Net Profit Margin. However, with adding more team
members our NPM is lower until we increase sales.
3. Our plan is to ship 400 units next year.