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
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 ...
