Build your income statement and see where the money goes
The three margins that matter
Gross margin tells you if your core product makes money before overheads. EBITDA margin tells you if the business as a whole is efficient. Net margin is what you actually keep.
If gross margin is healthy but EBITDA is thin, your problem is overheads, not pricing. If gross margin itself is low, fix pricing or input costs first — no amount of overhead-cutting rescues a broken unit economic.