Less Cost of Sales 672000
Gross Profit 1428000
Gross Profit Margin (Gross Profit/Sales) 32%
collected. Therefore, an accurate balance of accounts receivable must be known as both the start of
the assessment period and at the end. Sales will be recognised net of any discounts given to
value of stock to include the appropriate share of freight costs inwards!)
- Have a system for stock deliveries
- Secure your loading bay and stock storage areas
- Record stock drawn for personal or team use
I can supply a copy if you request one in comments.
Pricing really is an art, not a science. One big mistake that many business owners make is using
standard mark ups to determine a price. This may mean that opportunities for 200%-1000% or more mark up on some stock items may be missed with the result that valuable gross profit dollars are lost. Also remember that being aware of price points can make a big difference to gross profit dollars. There is a saying that the customer owns the first numbers in a price - the last numbers belong to the business owner - so use this information strategically to maximise your gross profit.