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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 August 7, 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.

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