Flooring Contractor Gross Margin
Healthy gross margin for a commercial flooring contractor doing $1M–$6M is 26–36%. Most run 14–20%. The gap comes from three sources: blended cost tracking across floor types so profitable work subsidizes losing work, material procurement costs absorbed into overhead instead of recovered in the SOV, and GC billing cutoffs missed that push draws 30+ days later than necessary.
Gross margin for a commercial flooring contractor is the percentage left after all direct project costs — labor, flooring materials, adhesives, underlayment, subfloor prep, equipment — before overhead hits. The number is uniquely hard to interpret without per-floor-type job costing because carpet, LVT, hardwood, epoxy, and polished concrete all have different labor-to-material ratios, different waste factors, and different productivity assumptions. Blending them gives you a number that is wrong for every floor type individually.
What the Numbers Should Look Like
The fastest gross margin recovery for flooring contractors: Separate cost codes for each floor type — carpet, LVT, hardwood, epoxy, polished concrete — and match every material procurement cost to the billing event that recovers it. Most flooring contractors close 8–12 gross margin points with these two changes alone.
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