Key takeaways Gross margin = (net sales − COGS) ÷ net sales × 100. Gross profit is the same figure in dollars. For ecommerce,

Key takeaways Promo ROI = (incremental gross profit − promo cost) ÷ promo cost, where 100% is break-even and anything below it means the

Key takeaways Pricing for profit means Selling Price = Total Cost ÷ (1 − target margin), where total cost is fully loaded and the

MAP pricing is the lowest price a retailer is allowed to advertise your product for. Brands use it to keep one discounter from dragging

Cost of goods sold (COGS) is the direct cost of the goods you sold in a period, and on most ecommerce P&Ls it’s the

Gross margin and contribution margin both measure what’s left after costs, but they subtract different costs and answer different questions. Gross margin asks whether

Your contribution margin ratio (CMR) is the percentage of each sale left after variable costs — the same money as your dollar contribution margin,

Keystone pricing is the oldest rule in retail: take what a product costs you and double it. That gives you a 100% markup, a

Contribution margin is what one sale leaves behind after its variable costs. It’s the money left to cover your fixed costs — rent, salaries,