Every job is quoted at 30%. A third of them deliver under 10%.

Gross margin can sit still for years while the mix underneath it changes completely, and the average is the statistic least likely to tell you.

By Steve 5 min read
Abstract bridge artwork for Every job is quoted at 30%. A third of them deliver under 10%.

A business that prices cost-plus knows its target margin exactly. It appears on every estimate, it is checked before the quote goes out, and it is reported monthly on the P&L. What it almost never survives is contact with delivery. And because the reported number is an average, the survival rate is invisible. Take an illustrative shape. Forty jobs a year, £2m of revenue, gross margin reported at 27% against a 30% target. Nothing alarming: a three-point drift, blamed on materials, absorbed into next year’s rate card. Now split the…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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