“The Blended Total Is Hiding The Real Problem.”

Most business owners know their overall gross margin.

Almost none know it by service line.

That gap is often exactly where the problem lives.

I've sat with clients doing $1.8m who looked profitable on paper. When we broke margin down by service line, one of their three lines was running at 11%. $600k of work. Almost no return.

The blended total had been hiding it for years.

Sometimes low-margin lines exist for good reasons. But if it's accidental, it's expensive.

Separate your revenue by service line. Calculate margin on each. Anything below 35% with no strategic justification is a pricing or cost problem to fix.

Do you know your gross margin by service line, or just the blended total?