Note that COGS is not your only cost. You have indirect costs which may be fixed or recurring, but do not scale the same with sales revenue.
So, at $40k of COGS, you might bring in $100k, but that doesn’t mean that 250% ratio will be necessary, scalable, possible, or competitive at $200k, $500k, $1MM of revenue.
Note that COGS is not your only cost. You have indirect costs which may be fixed or recurring, but do not scale the same with sales revenue.
So, at $40k of COGS, you might bring in $100k, but that doesn’t mean that 250% ratio will be necessary, scalable, possible, or competitive at $200k, $500k, $1MM of revenue.