Most owners chase revenue but ignore margin. Revenue shows what you make margin shows what you keep. And that’s where businesses quietly bleed cash.
A Real-World Example: The HVAC Company
Take a real example: a mid-sized HVAC company thought they had a sales problem. They didn’t. Their gross margin was under 30%—far below the 40–45% industry norm. Once we dug in, we found:
- Technicians were discounting jobs without approval.
- Overtime and material waste inflated costs by 7–10%.
- Maintenance contracts were running at just 18% profit.
The Turnaround: From 30% to 40% Margin
By tightening pricing discipline, tracking performance, and redesigning workflows, they lifted margins from 30% to 40% in six months without a single new customer. That 10-point gain became hundreds of thousands in extra profit.
The 3-Step Margin Audit
Here’s the same 3-step margin audit we used:
- Map your money flow. List every service, calculate true cost (labor, materials, overhead). Find which jobs actually make money.
- Enforce pricing discipline. Set margin targets, create approval rules for discounts, and train your team to defend value.
- Track weekly margins. Use a simple dashboard to measure gross margin, labor efficiency, and cost per job. Fix dips fast.
The Real Truth About Growth
The truth is, most companies don’t need more sales they need to keep more of what they already earn.
If your profit feels stuck, it’s time to find your hidden margin.
Take Action Today
Download your free Business Health Scorecard or book a strategy call to uncover where your cash is leaking. It isn’t about selling more it’s about keeping more.
