Question 1

What is GM income?

Accepted Answer

GM income is another name for gross profit: revenue minus the direct costs required to deliver that revenue.

Question 2

What costs belong in COGS?

Accepted Answer

COGS includes direct production or purchase costs, plus inbound freight and packaging. It excludes marketing, rent, and admin costs.

Question 3

What is the difference between gross margin and net profit?

Accepted Answer

Gross margin focuses on profit after direct costs. Net profit subtracts operating expenses, taxes, and interest, so it is usually lower.

Question 4

How can I improve margin?

Accepted Answer

Improve margin by raising price, lowering unit cost, cutting fees, or reducing discounts and returns.