05/11/2026
TRADIES — ARE YOU MAKING A 15% MARGIN OR JUST ADDING A 15% MARKUP?
Because they're NOT the same thing!
Let's say you're quoting a job.
Your materials and direct labour cost you $1,000.
🔨You add 15%.
🔨Your quote comes to $1,150 plus GST.
You might think you're making a 15% margin.
However, you're actually only making a 13% gross profit margin.
🔨To achieve a true 15% gross margin, you'd need to charge $1,176.47 plus GST.
🔨That's another $26.47 on that job.
🔨Now multiply that across 100 jobs.
🔨That's over $2,600 in additional gross profit.
And here's the important part...
That gross profit still needs to contribute towards your vehicles, insurance, administration, other overheads and the profit you want your business to generate, unless you are also charging these separately and I can show you how to do this.
You can be flat out working, quoting jobs and bringing in revenue — but are you actually making the money you think you are?
At Beyond Your Numbers, we help business owners understand their pricing, their numbers and what they're really making.
Because being busy doesn't necessarily mean being profitable.
💡 Want to know how healthy your business really is?
Complete our FREE Business Health Check.
👉 https://www.beyondyournumbers.nz/business-health-check/