Have you thought about your margin?

Gross margin is an often confused concept but a powerful tool in figuring out how to market your business (and decide what to make, who to hire and how to fund it). Few people understand it, while others use a definition I don't find very useful.

I like to think of margin as the money left over after you've paid the direct costs for making an item, the last one of the day.

If you run a pizza place and a large pie costs $10, your gross margin is $10 minus the cost of flour, water, yeast...