Field Service EBITDA Analysis

What Margin Drift Costs a 50-Tech Operation

The 8–14 point GM spread between your top and bottom techs is worth $400K–$875K per year. Most operators have never run this calculation — because the P&L makes it invisible.

You run a 50-tech HVAC operation. Revenue is $35M. You’re growing. But your gross margin hasn’t moved in two years. Might be slipping. You pull the P&L. Overall GM sits at 48%. Looks fine. Within range of your budget. Your controller doesn’t flag it. Your PE sponsor glances at it quarterly and moves on.

Here’s the problem: 48% is an average. And averages hide the most expensive problems in field services.

What margin drift actually is

Margin drift is the gap between what your best techs produce and what everyone else produces — on the same job types, in the same zip codes, with the same pricebook.

We’ve seen it in every operation we’ve embedded with. The pattern is consistent:

  • Top-quartile techs close at 36–42% gross margin per job.
  • Bottom-quartile techs close at 24–30% gross margin per job.
  • The spread: 8–12 points on the same work.

That’s not a training problem. It’s a systems problem. Your best tech diagnoses differently, presents options differently, prices differently, and closes differently. None of that knowledge is captured anywhere. It lives in their head.

When they’re sick, it stays home. When they quit, it walks out.

Putting dollars on the spread

Let’s do the math on a real operation. We’ll use conservative assumptions based on FSM data from comparable operators.

The operation:

  • 50 technicians
  • $35M annual revenue
  • ~28,000 completed jobs/year (560 per tech)
  • Average ticket: $1,250

The margin spread:

  • Top-quartile GM/job: 39%
  • Company average GM/job: 31%
  • Bottom-quartile GM/job: 26%

What the bottom half costs you:

If you brought the bottom 25 techs from 26% to just 31% (not even top-quartile — just average), that’s 5 points of margin on roughly 14,000 jobs.

Key figure

5% × $1,250 × 14,000 = $875,000 per year.

Not theoretical. Not “potential revenue.” That’s margin you’re already generating through your top performers. Your bottom half just isn’t executing at the same standard.

And that’s the conservative number. If you close half the gap to your top quartile, you’re looking at $400K–$800K in recovered margin depending on your ticket size and job mix.

Where the drift comes from

Margin drift isn’t random. It follows patterns. After embedding with dozens of operations, these are the five root causes that show up every time.

1. Diagnostic inconsistency

Your best tech walks into a no-cool call and runs a systematic diagnostic. Checks capacitor, contactor, refrigerant charge, airflow. Finds the root cause and the secondary issue.

Your average tech replaces the part that’s obviously failed and leaves. The secondary issue becomes next month’s callback.

Same job. Same truck. Different diagnostic depth. Different margin.

2. Option presentation variance

Top performers present 3 options on every qualifying job — repair, repair-plus, and replace. They anchor on the replacement, walk through the math on repair vs. replace, and let the customer choose.

Bottom performers present 1 option: the repair. They leave money on the table because nobody taught them the framework, and there’s no system ensuring it happens.

The gap in average ticket between a 3-option presenter and a 1-option presenter is typically 30–45%.

3. Pricebook non-compliance

Your pricebook exists. Your techs don’t all use it the same way. Some round down. Some skip line items. Some “give the customer a break” on the diagnostic fee.

We’ve measured quote variance of 15–30% on identical job scopes across techs in the same branch. That’s not a pricing problem. It’s an enforcement problem.

4. Attach rate gaps

Your best tech sells a maintenance agreement on 40% of qualifying jobs. Your average sits at 15%. Nobody tracks this by tech. Nobody coaches to close the gap.

On a 50-tech operation, that delta in attach rate is worth $120K–$200K in annual recurring membership revenue alone.

5. Speed-driven shortcuts

Techs who are rushing — whether to hit a job count, finish early, or avoid a difficult conversation — cut corners on diagnostics and skip the option presentation. They close the job faster at lower margin.

This isn’t laziness. It’s a system failure. If there’s no standard for how long a diagnostic should take, and no measurement of what a complete diagnostic includes, speed always wins over thoroughness.

The spread in your operation exists

See your margin spread by tech in 30 days.

We’ll pull your FSM data and show you GM per job by tech and job type — the numbers your P&L doesn’t show.

Book the 45-minute diagnostic →

Why the P&L doesn’t catch it

The reason margin drift persists in $20M–$100M operations is that it’s invisible at the P&L level. Here’s why:

Monthly financial reporting is too aggregated. Your P&L shows overall gross margin by department. It doesn’t show GM by tech, by job type, by branch. The spread is buried inside an average that looks acceptable.

FSM reports aren’t built for this. ServiceTitan, Housecall Pro, FieldEdge — they store the data. But the out-of-box reports don’t surface tech-to-tech margin variance by job type. You’d have to build custom reports and review them weekly. Most operators don’t.

Nobody owns the metric. In most operations, gross margin is a finance metric. But margin is produced in the field by techs making pricing and diagnostic decisions 15 times a day. Finance can’t coach a tech. And operations managers don’t have margin visibility at the job level.

Top performers mask the problem. When your best 10 techs are producing 39% GM, they pull the average up enough that the bottom 15 don’t trigger an alarm. The average looks fine. The variance is where the money is.

What measurement looks like

Fixing margin drift starts with seeing it. Not at the P&L level. At the job level.

The baseline you need:

  • Gross margin per completed job, by tech, by job type, by branch
  • Quote variance: same job type, different tech, different price
  • Option presentation rate: how often are 3 options being presented?
  • Attach rate by tech: maintenance agreements sold per qualifying opportunity
  • Callback correlation: which techs generate the most return visits?

Most operators have never seen this data laid out. When they do, the reaction is always the same: “I knew it was a problem. I didn’t know it was this big.”

The fix isn’t training. Training without measurement changes behavior for 2 weeks. The fix is a system that:

  1. Codifies what your top performers actually do (not a generic playbook — their specific diagnostic path, their option framework, their close technique)
  2. Deploys that standard across the roster
  3. Measures drift against the standard continuously
  4. Flags deviations before they hit the P&L

That’s the difference between a one-time initiative and a living system. Training decays. Systems compound.

The compounding cost of ignoring it

Margin drift isn’t static. It compounds.

  • New hires absorb the culture of whoever trains them. If your average tech ramps a new hire, the new hire inherits average habits. Your spread doesn’t close — it widens.
  • Peak season amplifies the gap. When volume spikes, shortcuts increase. Your worst-margin months are your highest-revenue months. That’s when drift costs you the most.
  • Acquisitions multiply the problem. If you’re a PE-backed platform rolling up operators, every acquisition brings a new set of margin spreads, different pricebooks, different diagnostic standards. Without a standardization system, you’re buying revenue and hoping margin follows. It usually doesn’t.
Key figure

A 50-tech operation that ignores 8–12 points of margin spread for 3 years leaves $1.2M–$2.4M on the table. That’s EBITDA that should be on your balance sheet.

What to do about it

You don’t need more dashboards. You need someone to sit in your operation, pull the actual data, watch the actual behavior, and build a system from what your best people actually do.

That’s what a full-operation audit does in 30 days:

  • Week 1: Ride-alongs with your top tech and an average tech. Side-by-side comparison of diagnostic approach, option presentation, pricing decisions.
  • Week 2: Pull 6–12 months of FSM data. Map GM by tech, by job type, by branch. Quantify the spread.
  • Week 3: Cross-reference field data with back-of-house metrics — call capture, booking rates, follow-up rates. Because margin drift in the field often starts with which jobs get dispatched and how.
  • Week 4: Deliver the findings. Every leak quantified. Conservative EBITDA lift estimate. A roadmap to close the gap.

If the audit doesn’t identify at least $200K in recoverable annual revenue, you pay nothing.

The spread in your operation exists. The only question is whether you can see it.

Spaid embeds engineers inside field services operations to find and fix revenue leaks across the full operation — call center, dispatch, field, and follow-up. We work with $20M–$100M operators running 40–120+ techs on a modern FSM.

Related Reading

If margin drift is costing you, these pages go deeper:

The Measured Pilot Guarantee

If we don’t identify $200K, you pay nothing.

Our Full-Operation Audit (Days 1–30) maps every revenue leak — field and back of house. If we don’t identify at least $200,000 in recoverable annual revenue, we refund Phase 1 in full. You keep all audit deliverables.

After kickoff, we ask for about 30 minutes a week of your ops leader’s time.

Zero risk. Full-operation visibility. Founding customer pricing: 40% below standard rates.
Start Here

45 minutes. Your data.
No commitment.

We’ll start with a recent export or sample call data from your FSM and call system, show you the biggest leaks, and scope the engagement. Full access happens only if you proceed to the audit.

Accepting 2–3 founding operators · $20M–$100M revenue · 40–120 techs · On a modern FSM