10:29am Mar 15, 2001 PST
We are working on profitability this year and I would like to ask
the following questions:
1) What percentage do you shoot for in gross margin 2) What percentage
do you shoot for in AGI
Traffic Questions:
1)Another question that has come up is how many people does it take
to run traffic? We are a 30 person agency (we run about 450 jobs
per year) and use Clients and profits traffic system. We have the
traffic person claiming that there is too much- and she needs an
assistant.
2) Does anyone use another traffic system in addition of Clients
and Profits to run traffic?
Suzanne Nolan
10:30am
Mar 15, 2001 PST
Gross margin % is a tough forecast because as you know it depends
on your product mix. BUT when I do annual forecasting I like to shoot
for a blended gross margin of 50% or better.
When you say AGI I assume you mean Gross Margin less O/H expenses,
before taxes and investment income: In that case I forecast 14% to
25% as a target.
My quick & dirty rule of thumb:
100% revenue 50% COS (I include direct labor in this - contrary
to many agency accountants) 25% O/H 25% profit to contribute to taxes
Investment income is icing on the cake
I can't answer the traffic question. We are a 25 person agency and
do not have a dedicated traffic person yet. It's a shared function.
I'm interested in comments on this though.
Roxanne Cowan
10:30am
Mar 15, 2001 PST
We have about 45 people...
We have about 45 people and do about 80 million in billings and
we have 2.5 traffic people. We also have an admistrative assistance
help out with data entry (ie time sheet and invoice and a/r's)
Randy Lipe
Mgr,
Advertising Operations
10:30am
Mar 15, 2001 PST
You peaked my curiosity...
You peaked my curiosity. Can you please tell me what your company
specializes in? We bill half that and have more people. Our company
is a full service company (do a little of everything). Thank You
Ed Miller
Business Manager
Grafica, Inc. |
