Cost of Goods Sold, Gross Profit, and Gross Margin
The next concept that we need to understand is costs of goods sold (COGS) or cost of sales. Cost of goods sold indicates the cost of the goods sold during some time period (i.e., one month or 0ne year) and can be defined in several ways. COGS can be defined as the difference between goods [...]
Wholesale Markup versus Profit Margin
I was going to write about product pricing strategies and methods then realized there are several key concepts we need to understand first. The first of these concepts is the difference between wholesale markup and profit margin. These both refer to the same value but have considerably different meanings. And misapplying these terms can be [...]
