For those of you that do not get a separate operating statement on your service and install business, you can use the above graph to determine what your combined gross margin should be, if your business was operating at these GM's: Service - 65%, Install - 50%
These are very reasonable margin goals. All you need to know is the approximate service sales % of your total sales.
As an example: if your total sales are $1,000,000 and you think that your service sales are about $400,000, that is 40% of the total.
Enter the graph on the left side at 40%, go to the right until you hit the line, then go straight down to the margin and read what your margin should be (56%).
If your actual gross margin shows much less than the chart says it should be, I can probably help!
