Glossary
Gross profit
Gross profit is net sales minus the cost of goods sold, before any rent, wages or other expenses.
What it means for a shop owner
It is what is left to cover the shop's running costs and then become profit. If gross profit is smaller than the fixed costs, the shop loses money however much it sells. Divide it by sales to get the profit margin.
A worked example
Net sales are 1100 and the cost of goods is 700. Gross profit = 1100 - 700 = 400.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes