Expand the product line, eliminate unprofitable items and otherwise work with the assortment. This will also increase marginality, especially if you sell goods with good profitability more actively.
Maintain business profits as much as possible. All non-operating expenses must be reduced and costs must be constantly monitored.
Conclusion
Here are the main conclusions:
The gross margin formula helps calculate the overall profitability bosnia and herzegovina cell phone number list of a business as a percentage to assess its efficiency. If a company is operating at a loss, it needs to review production, product range, and development strategy.
It will differ depending on the company's field of activity, business processes and products sold. You can use approximate values in the industry as a basis.
Gross margin does not take into account expenses for renting premises, paying taxes, etc. Therefore, to get an accurate picture of the profitability of the business, you need to analyze other KPIs.
Gross margin is therefore a fundamental metric that helps you manage your business more efficiently by identifying the potential for cost reduction and profit increase.