Gross margin is one of the most important numbers in your business.
Gross Margin (percentage) is a good indicator that your business is healthy: Both on the selling/strategy end indicating your customer is willing to pay you well for what you offer, and on the operations end demonstrating that you can efficiently produce what the customer wants.
The trend of this number over time can tell quite the story. When it starts to fade, as it often can, it is a reason for concern.
This week we talk about Gross Margin erosion, why it happens and what you should do if you find yourself in this situation.
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