Quote:
Originally Posted by jimmy-3-way
My point/questions was really, aren't there ALWAYS unknown expenses looming?
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Sure there are. Cost of goods go up and down. Energy costs go up and down. Those are factored in when jobs are quoted and priced. Labor costs only go down if you are forced to reduce the workforce. Over the years, margins have gone down. There isn't a lot of room for errors. On average, businesses like mine work on less than a 10% margin.
If someone would tell me, what my insurance costs will be in 24 months, we can plan for that. If someone would tell us that they are going to take away the rapid depreciation deduction on capital equipment we could plan for that.
This is the problem. There are tax increases...how much? There is Obamacare,how much? We already spend on average $11,000 annually per employee just on health insurance. Then there is workcomp insurance,dental,life and 401K. That 10% doesn't leave much room.