Revenue minus cost of goods sold as a percentage of revenue. The fundamental profitability metric before operating expenses.
Gross Margin is defined as: Revenue minus cost of goods sold as a percentage of revenue. The fundamental profitability metric before operating expenses.
Gross Margin is typically measured using data from a Accounting / ERP. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.
Gross Margin is a key performance indicator used across the following sectors:
Firehawk Analytics connects directly to your Accounting / ERP and delivers a live Gross Margin dashboard. Configuration is completed within 48 hours — no data analyst required on your team.
Total sales divided by retail floor area. The classic physical retail productivity metric — indicates store layout and merchandising effectiveness.
Percentage of visitors (foot traffic or website sessions) who complete a purchase. The single most impactful metric for revenue growth without increasing traffic.
Mean dollar value per transaction. Increasing AOV through upselling and bundling is often cheaper than acquiring new customers.
In 48 hours, you'll have a live Gross Margin dashboard connected to your Accounting / ERP.