In the complex landscape of your business, there’s one number that is most influential – your gross profit.
At PROTRADE United, we refer to it as your real income, and it holds the key to shaping your success. In this article, let us demystify the concept of gross profit and harness it to its full potential for your business.
Understanding Gross Profit Calculation.
Your business attracts clients to bring income for jobs or projects. Gross profit is derived from your sales income minus the costs involved in executing a project. These costs, known as Costs of Goods Sold, encompass everything from materials to labor. It includes components needed to deliver the job, such as contractors, internal labor, equipment and possibly some other incidentals like fees and charges.
What remains after subtracting these expenses is your gross profit – your true income from the project. Anything over and above isn’t truly yours. The key question to ask is: How can you amplify your take-home from every project?