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Margin (Gross Margin): Definition for Contractors

What's left after the cost of a job as a share of the price charged. On a $13,000 sale with $10,000 of cost, the $3,000 left is a 23% margin

What is margin (gross margin)?

Margin (Gross Margin). What's left after the cost of a job as a share of the price charged. On a $13,000 sale with $10,000 of cost, the $3,000 left is a 23% margin.

Why it matters to your pricing

Margin is what actually funds your overhead and profit. Price from the margin you need to keep, then convert to the markup that achieves it.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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