Profit, Margin & Cost
Eight connected explanations, starting from what your stock actually costs you and ending at the pricing and discount decisions that depend on it.
Why this cluster exists
These entities all sit on one causal chain: Revenue and Cost of Goods Sold produce Gross Profit, which is expressed as a Gross Margin (and is easy to confuse with Markup, which measures something different). Subtract operating Expenses from Gross Profit and you get Net Profit. Understanding where your Break-Even Point sits, and how Pricing and Discounts move all of the above, is what turns bookkeeping into decision-making.
What Is Gross Profit?
What's left after you subtract what your stock cost you.
What Is Cost of Goods Sold?
The real cost behind every sale, and how to calculate it.
What Is Gross Margin?
The percentage of every cedi of sales that's actually yours.
Gross Margin vs. Markup
The single most common pricing mistake, explained clearly.
What Is Net Profit?
What's actually left after every expense, not just stock cost.
What Is Break-Even Point?
How much you need to sell before you stop losing money.
How Should I Price a Product?
Working backward from the margin you actually want.
What a Discount Really Costs You
Why a 10% discount can cut your profit by far more than 10%.