Definition

Seeing an increase in the money coming in from sales over time. Growth shows that more people are buying your products or services.

What to consider

  • Focus on reducing direct costs.
  • Compare across product lines.
  • Use gross profit as a baseline for pricing strategies.

Real world scenarios

  • A café in Portland calculated its gross profit by subtracting the cost of ingredients from daily sales.
  • A manufacturer reviewed gross profit per unit to assess production efficiency.
  • An online retailer analyzed gross profit margins on each product category.

Related terms

Entrepreneurial Finances