Aim for 70-80% Gross Margins
22 Oct 2026 · 1 min
0:39
In this video segment, Eric Deeran advises businesses to target gross profit margins of 70–80% on their services. Using a $10,000 fee example, he explains that cost of goods sold (COGS) should stay at or below $3,000. He then outlines typical additional expenses: advertising acquisition costs (5–10% of revenue) and sales closers (about 10%). After accounting for these, a healthy net margin of roughly 40% should remain. Deeran stresses that without such pricing discipline, companies will struggle to achieve a positive return on ad spend because insufficient profit remains to cover variable costs. He concludes by prompting viewers to assess whether their pricing is high enough to meet these margin targets.
