This One Mistake Destroys Your Profit Margin #BusinessTips #MoneyMasters

3 Aug 2024 · 1 min

Watch on YouTube

0:30

Most businesses have a 30-50% gross profit margin. A 5% discount forces you to sell 20% more product just to keep the same net profit. Know your numbers or a small discount will wreck you.

The average business typically has somewhere between about 30% and 50% gross profit margin. You've got to know a little bit about your profit and loss. If you don't know your numbers, go and speak to your accountant. And what they say is, if you put up just a 30% gross profit margin, just a 5% discount, you've got to sell 20% more of the same product or service to make the same net profit. So you can see that— and why that happens is, as the money trickles down through the profit and loss, there's this kind of compounding effect which happens.

More from Robin

19:25

Watch This to Generate 1000s of Leads (In Any Niche)

2d ago

1:00

Why your sales strategy is broken #b2bmarketing #sales

3d ago

1:03

How to Generate Leads for a Small Business #interview #podcast

6d ago

11:17

Surviving Entrepreneur Burnout - Why I Nearly Quit My Business (And How I Got Through It)

1w ago

19:48

Freelancer vs Business Coach: How to Build a Profitable 6-Figure Creative Business

2mo ago

0:59

How I Turned My Biggest Fear Into Drive #mindset #business #success

2mo ago

1:00

The One Thing That Scares Every Entrepreneur #shorts #businessfear #mindset

3mo ago

19:43

From $0 to $1m With One Simple Idea (90% Success Rate)

3mo ago

0:58

How Timothy Armoo Finds A-Players Nobody Else Can #recruiting #scaling #business

3mo ago

1:00

Her Biggest Fear Almost Destroyed Her Business #fear #business #mindset

3mo ago

16:41

Building a $50,000/Month Business for a Stranger in 16 Minutes

3mo ago

See all content