I had to laugh when the person mentioned small margins when I enquired about the discount structure.

When you take off your trady hat and put on your business cap you need to understand profit margins.

I have situation at the moment whether to re register with VAT, I cut back my turnover and only work enough to keep below the threshold.

So my material markup is around 25 %, its ok it pays the bills.

Now that I have moved in the solar game, I sit with a huge problem, my turnover will exceed a a million a week, which means I might have to cut back to working 2 days a month or I have to reregister with VAT.

The margins on a couple hundred thousand a month need to be higher compared turning over a million a week.

I didnt think it would become an issue so quickly.

Think about it, you buy a couple odds and ends for a new build with a small team, the outlay is small, suddenly you do one solar install and the material cost is R150 000, it take 3 days to complete the installation, that's just for one team, now you start selling 1 unit a day , suddenly that's R750 000 x 5, eeeesih you have a vat registration problem