Sales margin

Sales Margin

Sales Margin is a term commonly used by resellers to measure profitability as a percentage of the total sales revenue. It is a crucial metric that shows how much profit a company earns from its sales and helps to determine the pricing of products and services. Sales Margin is calculated by subtracting the cost of goods sold from the revenue generated by sales, then dividing the result by the revenue multiplied by 100. A higher Sales Margin indicates that a company is generating more profit per sale, which is a positive sign of business performance. Therefore, it is crucial for businesses to monitor their sales margin regularly and make adjustments to pricing or operations as necessary to maintain profitability.