Subcontractors: Embrace ‘Blended Margin’

Posted to LinkedIn 9/8/25

Your Weekly Beast Bit:


With home sales slowing, builders are cutting staff — and squeezing subcontractors for lower pricing. Time to panic? No.

Now’s the time to sharpen your selling message, double down on service, and focus on your overall value proposition.

Here’s the truth: you don’t need to be profitable on every single project. This industry rewards those who play the long game. A few slim or zero-margin jobs will keep crews busy, foster relationships, and (most importantly) protect economies of scale.

If you cut volume, your unit costs will go up — and suddenly even your profitable accounts aren’t profitable anymore.

The key is to 'margin manage' your book of business holistically; not just individual jobs. As long as your overall blended margin keeps the lights on and your company solvent, you’re in the game.

⚠️ One rule: only accept thin-margin work from builders who pay like clockwork (think public companies). Cashflow is everything — you can’t afford two hits.

👉 Looking for ways to protect your margins and build staying power in a tough market? Let’s talk.