June 21, 2023
Today, competition for weak current projects is very tough, and profits are not as good as they used to be. This is a good weak current project. After relationship, I am sure that it can be won. After calculating profits, I feel that this project looks like a tasteless project. After all, I only made a lot of hard money and I have to thank God for kindness. The taste of this should be taste of most guards. Engineers have experienced it for themselves.
How much profit is worth getting from a weak current project?
The editor believes that profit depends on factors such as size, complexity and competition of project. We can classify to discuss.
Case 1. Competitors
In case of competitors, our margins are usually lower, and total gross margin is between 30% and 60%.
If project is more complex, including embedded wiring, monitoring system, building management, intercom system, perimeter alarm system, etc., gross margin is slightly lower. If project is simple, then we control cost of practical products, and profit will be slightly higher. When using products of different brands, profits can vary from 5% to 10%, which requires us to be selective when choosing suppliers.
Case 2: no competitors
It is best that project has no competitors so that our gross margin can reach 50-70%. Since a number of issues need to be taken into account, such as construction period, rework, and capital chain, a certain rate of return must be obtained.
—— Friendly advice——
1. Even if project is profitable, if repayment cycle is too long, project may lose money, which is why many people say, "If gross profit of a weak power generation project is less than 50%, don't touch it!" But some people say that "30% profit for a small project with weak electricity is very good." So, regardless of whether a particular project can bring in money or not, there is still time to look at results of Party A. qualifications, credit and other issues. Each project has its own specifics. We do not generalize.
2. The purpose of accepting orders for weak power projects is to get money, not to be angry with anyone, and also not to express determination to Party A. So Do not offer a reserve price early to win bid, otherwise you will end up suffering.
3. Profit from a weakly current project can only be determined after completion of project. Some costs are likely to be missed in previous budget, and project manager also has control during actual construction, so winning bid is a Skill, and being able to do a good job is an even greater skill.
