If all the financial terms surrounding owning your laundromat have left you feeling like you should have gotten an accounting degree, you're not alone. With terms like the cost of goods, fixed costs, variable costs, and gross profit margin flying around, you may find yourself feeling confused. Rest assured, you're in good company. Many small business owners don't understand these terms completely. However, understanding how these terms are defined and calculated will help you take the temperature of your business and let you know whether you're getting enough customers in the door to turn a profit or whether you're losing money in your laundromat. Don't lose money on a commercial washer in Raleigh, NC. Call T & L instead. We'll save you time and money!
What is gross profit margin?
Used to assess the health of your business, the gross profit margin refers to the amount of money that is left over from your business after accounting for the cost of goods sold.
What is revenue?
Income resulting from the sale of goods or services.
How do I calculate the gross profit margin?
To find the gross profit margin of your business, you will need to subtract the cost of goods sold (CGOS) from the revenue of your business and divide that number by the revenue.
What does gross profit margin do for my business?
If a company's gross profit margin is not adequate, then the company will not be able to pay for their operating expenses. Ideally, a business wants their gross profit margin to be stable so that the business can remain functional and profitable.
Utilize the resources you have available to you to stretch your budget as far as it will go. Unsure how to make your business more profitable? Relying on professionals, like those at T & L Laundry Equipment, to ensure that you are getting exactly what you need for your business helps keep your spending in check and lays the foundation for a lasting and successful business.
Best Prices on Vended Dryers and Commercial Washer in Raleigh, NC
If upgrades and remodeling are in your plans for 2018, talk with our sales staff at T & L Laundry Equipment. We offer in-house financing on all equipment, previously used equipment, and the hospitality items you need to keep your customers coming back. We have a great sale going on for a new vended dryer or commercial washer in Raleigh, NC.
We are ready to put our over 40 years of experience to work for you. We know what it takes to make your business profitable and how to create a laundromat your customers can't stop talking about. Concerned about financing the new equipment you need? We work directly with the manufacturer to help you secure the capital to make your upgrade and financial dreams come true. Call us today to find out how we can help you make your 2018 financial goals a reality.