Price

• Price

  Outline your pricing strategies that will help you reach your target profit margin.
• Gross profit margin is most easily understood if it is expressed as a financial ratio, whereby:

  The cost of goods sold is compared to the company's net sales.
• Firms that sell a service will typically have very low or no cost of goods sold.
• Gross Profit Margin = (net sales - cogs) / net sales
• The COGS is made up of the company's direct costs.
• Direct costs are usually variable in nature.