Fiducia TogetherGross margin by product
Which lines actually make money. Usually a surprise.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Gross margin calculated per product, service line or job type rather than across the whole business.
Why it matters
Almost every business has one line quietly subsidising another, and the blended figure conceals it. Knowing which is which changes pricing, marketing and sometimes what you sell at all.
What it looks like in practice
It needs a chart of accounts that separates the lines. That is usually a one-off setup change and it is the most useful thing an accountant can do for a small business.
What to watch out for
Allocating overheads to make the comparison. Compare on GROSS margin — contribution — before overhead allocation muddies it.
Where to get proper advice
Your accountant, who can produce most of these from data they already hold.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.