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Finance
Gross Profit Margin
The percentage of revenue left after subtracting the direct cost of making or buying the products you sell.
Gross profit margin is one of the first profitability numbers you look at. High margins usually mean strong branding, unique products, or low production costs. Improving it (better suppliers, higher prices, cheaper manufacturing) is a fast way to boost overall profit.
It's how much money you keep from every pound you make before paying rent, salaries, and ads.
Real world: A luxury watch brand with 70% gross margin has a lot more room to spend on marketing than a grocery store with 25% gross margin.
💡 Gross margin is the foundation — everything else (salaries, ads, growth) is built on top of it.