I’m trying to get my mind around my finances and want to put this in terms I, someone who isn’t bad at math but isn’t super, can understand. Something like the title says - for every dollar I spend in X service area of my business, I get $Y back."
So for an area of my business, let’s say that I sold $100,000. With COGS and salary, it cost me $40,000. My gross is $60k, or 60%.
So back to my question, in this case is it “for every $1 I spend in this area, I get $1.40 back”? I just can’t get me head around this, so thanks for the help.
** and yes, I know there are more things to consider like other overhead and operating costs, but I’m trying to keep the example simple.
50% net margins are ripping people off now?? what happened to this being a business subreddit?
It’s perfectly normal to make 50% net margins if you have good suppliers and a high-demand product.
hes saying 100% tho…like i said…not sure if its sketchy, might not be.