“We made $100,000 in sales.”
Sounds good.
But how much of that is left after the cost of goods?
If it cost $80,000 to produce or purchase those products, $100,000 in revenue does not mean you made $100,000. One of the metrics that helps you understand the economics of your product is gross margin.It shows how much of your revenue remains after covering the direct costs of delivering a product or service.
With WlasnaSprawa, you can calculate your gross margin and see how your business results change depending on:
— pricing;
— sales volume;
— cost of goods;
— your product mix.
This is especially useful when you want to understand which products are actually contributing to your business’s financial performance. Because high revenue alone doesn’t answer the question: “How much are we actually making?”
Have you calculated your gross margin yet?
Try it in WlasnaSprawa