What profit margin should I target?
Short answer
Net 10 to 20 percent for service trades after a real owner salary. If you're under, prices, costs, or both are wrong.
Why this range
Below 10 percent net is too fragile, one bad month wipes the year. Above 20 percent net is either an exceptional shop or you're underpaying yourself. Both need attention.
How to get there
Three levers: raise prices, cut waste, fire unprofitable work. Most shops can find 5 percent in 90 days just by killing two unprofitable services and raising prices three percent.
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