Running more than one location changes the question you should be asking. It's no longer "are we profitable?" but "which branch is profitable, and which one is quietly dragging the rest down?" Here's how to read profitability branch by branch so the numbers point you at exactly where to act.
Updated July 2026 · 6 min read
Gross margin is what's left after the direct cost of doing the work — labor, materials and fuel for the jobs themselves. Net margin is what's left after everything else: rent, office staff, software, insurance and the owner's time. A branch can post a healthy gross margin and still lose money once its share of overhead lands on it. Look at both for every location, because a strong top line can hide a weak bottom one.
When you blend Tampa, Orlando and Sarasota into one number, a strong location can carry a weak one and you'd never know. Say Tampa runs a 30 percent net margin and Sarasota runs at negative 5 percent; the blended average might read a comfortable 18 percent while Sarasota bleeds cash every month. Averages are reassuring precisely when they shouldn't be. Break the P&L out per branch and the loser stops hiding.
Some costs belong to a single branch; others — the central office, the accounting software, the owner's salary — are shared. To judge each location honestly you have to spread those shared costs across branches on a consistent basis, usually by share of revenue or by headcount. Whatever rule you pick, apply it the same way everywhere and write it down. The goal isn't a perfect allocation, it's a fair and repeatable one so branch comparisons stay honest month to month.
Two ratios cut through the noise faster than almost anything else. Revenue per tech shows how much work each field employee is actually turning into billings, and a branch that lags on it usually has a scheduling or pricing problem, not a people problem. Materials as a percent of revenue flags waste, theft or under-pricing — when one location spends noticeably more on parts to produce the same dollar of revenue, that gap is worth a hard look.
Numbers only pay off when they change a decision. A branch with thin net margin but strong gross margin has an overhead or utilization problem — tighten scheduling or share back-office load. A branch with weak gross margin has a pricing or materials problem — raise rates or fix purchasing. Set a target margin every location is expected to clear, then coach the branches under it and copy what the top branch is doing right.
The businesses that fix a losing location fastest are the ones that never let it hide in the first place. When each branch has its own margin, revenue-per-tech and materials ratio in front of you every month, a downward trend becomes a conversation in week one instead of a nasty surprise at year end. Measure it consistently, review it on a schedule, and act on the outliers.
Pack Command Center breaks revenue, margin and cost out by branch, tech and department so a losing location can't hide inside the company average.