Using Gross Margin to Score Your Product’s Maturity
OpenView Labs
FEBRUARY 11, 2021
As a founder, you can use this 84 cents to pay salaries, office rent, dividends, or invest in R&D. Operational efficiency and COGS. The pressure that growth puts on operations increases COGS, thereby compressing margins. For example, 84% GM means that for every dollar of product sold, a business keeps 84 cents.
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