A text : by Ian Boissoneault
Are you comparing your labor gross margin to other shops?
⚠️ Watch out for the trap.
Two shops can have:
• the same performance
• the same productivity
• the same shop floor reality
… and still show completely different margins.
👉 Why?
Because they are not using the same income statement.
đź“Š Loaded vs Unloaded
• Payroll taxes above the margin → lower margin
• Payroll taxes below the margin → higher margin
Same shop.
Same work.
Just a different accounting presentation.
đź’ˇ The real danger?
Comparing yourself… without knowing exactly what you’re comparing.
👉 Gross margin is not a trophy.
👉 It’s a management tool.
Before trying to “fix” a number,
make sure you understand it first.
đź’¬ Open question:
👉 Do you use a loaded or unloaded income statement?
👉 And most importantly… does your team know?
Picture credit : LinkedIn Ian Boissoneault
