Business Intelligence in 60 seconds - Gross Margin and Overhead Costs

This is a series of posts dedicated to providing very quick insights, but with high and immediate applicability.

The question :

• Sales are going well, but the net profit isn't showing up.

Key point:

• Gross margin: are all purchasing costs being taken into account?

• Overhead costs: Have they been identified? Are they included in the current definition of objectives?

• Taxes: what taxes apply to this activity and how are they being considered?

Common error:

• Focusing solely on sales and gross margin, with a lack of clarity regarding other costs.

The path to #profit

• Knowing exactly how much you need to sell to avoid losing money - and where to cut or adjust.

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