Wednesday April 1, 2020

What’s in a gross profit margin?

There’s what it costs to manufacture a product, and there’s what it costs you to buy it - and then there’s the universe in between

2nd September, 2018
The gross profit margin of Burberry is a whopping 70 per cent

What distinguishes Burberry from Tesco? Many things, of course, but one thing is their differing gross profit margins. The gross profit margin of Tesco is about 6 per cent, which means that when you buy a product there, the vast majority of your spend covers just the grocery item you have bought – no shops, no staff, no overheads yet.

The gross profit margin of Burberry is a whopping 70 per cent, which means that when...

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