22d • General discussion
Number of the Week - gross profit margin
Your number this week: gross profit margin. It tells you what's actually left after the cost of delivering your product or service — before all your overhead.
Pull it: (Revenue − Cost of Goods Sold) ÷ Revenue. Most accounting software shows COGS right on your P&L.
So what's healthy? For a professional services firm, you're generally aiming for a gross margin in the 50–70% range. Under 50% usually means you're underpricing or your delivery team is too expensive for what you're charging. Above 70% is strong — common in lean, high-leverage firms.
Pull yours this week and see where you land. If you're not sure how to read the result, DM me.
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Number of the Week - gross profit margin
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