TAG: gross margins

Why gross margins matter

October 22, 2014By

In retail, gross margin is an easily calculated number. It’s the difference between how much you purchase a product for and how much you sell the product for, stated as a percentage. Example: You sell a widget you purchased for $60 for $100. Your gross profit is $40 ($100-$60), and your gross margin is 40 percent. This number is important... read more

The power of pricing

June 11, 2012By

There is still a lot of gnashing of teeth about market pricing. I showed a chart at a recent Professional Landcare Network (PLANET) event that reported mowing prices in different regions of the country and what the average gross margin is at each price (see Table 1). The table details actual data we collect on pricing. It does not recommend... read more