If you don’t know the expected gross profit margin percentage for your business, don’t you think you should? Join an industry association, or search the Internet for more details about expected profit margins in your industry.
Stan Snyder, CPA and expert bean counter gives Microsoft’s Office site an insight into the technical issues from an accountant’s point of view.
Knowing the average gross profit margin for your industry will help you to compare your business to other businesses in your region and remain competitive. Tracking the changes in your actual gross profit over time will help you to price your products to maximize gross profit and net income.