What should the profit margin on integration be? Below are snippets from three articles from around the web. Emphasis added.
According to Firszt, 70 percent of dealers’ revenues come from equipment and 30 percent come from labor. That mix has been somewhat traditional for many years, if not even more skewed toward equipment. Meanwhile, dealers report an average 38.5 percent gross margin on products and 45 percent gross profit on their labor. The average revenue per employee is $175,000.cepro.com/...integrators_report_35_profit_margin
General contractors had a net profit margin of 1.5 percent, according to summary information on the Yahoo! Finance Industry Center, as of July 2011. ... Information technology delivery and related services had higher net profit margins in the 6 to 8 percent range. For a small employee-owned company, the owner's salaries are on top of the year-end net profit.ehow.com/...size-project-management-firm.html
It would not be a big stretch to image a well run service business like this making 15-25% net profit margins. Early in a services business there is usually no profits as the company reinvests in hiring people to grow, but by $20 million in sales the company should at least be pulling in 10% profits (if not more) depending on how much is reinvested...bothsidesofthetable.com/...your-crappy-little-services-business