Glossary
What is gross margin?
Gross margin is what is left of a sale after the direct cost of what you sold — before rent, salaries and everything else.
Updated 7 August 2026
It is the number that tells you whether your prices work. Net profit tells you whether your whole business works.
A jollof plate with a 55% gross margin and a catering job with a 22% one are different businesses wearing the same apron, and you cannot see that from revenue alone.