Gross Margin

Buy it for a dollar

Mark it up 50%

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Sell it for a dollar fifty

Keep the fifty cents

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Congrats

You made 33%

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Not 50% ?

No, Not 50%

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That’s gross margin buddy

Not the same as markup

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Gross profit is what’s left

After you pay the cost of goods

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And a 50% markup

Is a 33% margin

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Damn

Hard to make a buck

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I know right

But we’re not done

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Don’t forget the overhead

Call it ten percent

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Then I keep what’s left?

No

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That’s the EBITDA

You’re not done writing checks

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Interest taxes depreciation

Amortization

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Uncle Sam wants a piece

Of his most beautiful creation

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Don’t forget state and local

Put on your bifocals

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When all that’s paid

You can take a distribution

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Ok

Finally getting paid

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But did you take a wage?

No

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Forgot payroll taxes

Social security and Medicaid

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Pay a little more

Keep the rest of what you made

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I love business

God bless America

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All about that gross margin

Good job I’m proud of ya