Profit margin
Also known as: Margin
Profit margin is the portion of revenue that remains as profit after costs are subtracted, usually expressed as a percentage of revenue.
Margin measures how much of each dollar of sales you keep. Gross margin subtracts the direct cost of delivering the product or service; net margin subtracts everything, including overhead and taxes.
Margin matters more than raw revenue because a high-revenue business with thin margins is fragile. Improving margin — through better pricing, lower costs, or higher-value offers — compounds across every future sale.
To see how margin behaves at your own price and cost levels, run the figures rather than relying on a generic benchmark.
Overhead
Overhead is the ongoing cost of running a business that is not tied directly to producing a specific product or service.
Break-even point
The break-even point is the level of sales at which total revenue exactly equals total costs, so the business makes neither profit nor loss.
Markup
Markup is the amount added to the cost of a product or service to set its selling price, often expressed as a percentage of cost.
Put Profit margin to work this week.
Knowing the term is step one. The business kits ship the systems and templates that turn concepts like this into a running operation.