Margin One
Home services operations FAQ
The questions HVAC, plumbing, and electrical owners ask us most — answered straight.
Getting operational help
How much does a fractional COO cost for a home-services business?
Most home-services fractional-COO engagements run $3,000–$15,000 per month depending on company size and scope, versus $150,000–$300,000+ fully loaded for a full-time COO.
What's the difference between a fractional COO and a business coach?
A business coach advises and holds you accountable; a fractional COO takes operational ownership — they build and run the systems (meetings, KPIs, dispatch and service workflows) rather than only coaching you to build them yourself.
When should a contractor hire a fractional COO instead of a full-time one?
Typically in the $1M–$10M revenue range, when the owner is the bottleneck but a full-time executive salary isn't yet justified. Fractional gives senior operating help at a fraction of full-time cost.
Profit & margin
Why do my jobs look profitable but the business isn't?
Usually because jobs are priced off the wage rate, not loaded labor cost. The gap between the two silently underprices every job, so paper margin doesn't reach the bank.
What is a good net profit margin for an HVAC company?
Most residential HVAC shops run roughly 5–10% net profit; well-run, top-quartile operators reach 13–20%. The gap is rarely pricing alone — it's job-type mix, technician efficiency, and overhead recovery, which is exactly what an operating scorecard surfaces.
Why is my plumbing company busy but not profitable?
High volume hides low-margin work. Callbacks, loose dispatch density (windshield time), and installs priced below their loaded cost can quietly consume the profit that service and drain work earns. Seeing margin by job type and crew — not a blended average — is what separates a busy week from a profitable one.
KPIs & the operating scoreboard
What KPIs should a home-services contractor track?
The core seven: technician utilization, gross margin by job type, average ticket, estimate close rate, cost per booked job, membership renewal rate, and revenue per technician — each against a benchmark, reviewed weekly.
How often should a contractor review the scorecard?
Weekly. A monthly review is a history report; a weekly target-versus-actual review is what lets the team act on a red metric before the month closes.
What is a good technician utilization rate?
Well-run home-services shops typically target 60–75%. Below ~55% usually signals dispatch inefficiency, excess drive time, or unbilled rework.
By trade
How do HVAC contractors find their true profit margin per job?
True per-job margin needs revenue matched to fully loaded cost — labor burden, materials, truck, and overhead — for each job type. Blended averages hide it because an install, a service call, and a warranty job carry very different margins. Margin One computes loaded margin per job type, technician, and season from your field-service and accounting data.
How do electrical contractors track profit on project vs. service work?
Project and service work carry very different margins and labor profiles, so a blended number misleads. You need loaded margin and technician utilization split by work type. Margin One separates project, service, panel-upgrade, and EV work so you can see which stream actually funds the business.
See your margin on your own numbers.
One conversation to start — no rip-and-replace, no long setup.