Watching many years of the TV show The Profit has instilled the dictum to "know your numbers". I'll resort to an AI answer here, as a crutch:
To achieve a 25% net margin, a business typically requires a high gross margin, generally in the range of 50% to 80%, depending on the industry and operational overhead.
Indeed, 86% gross margin is excellent. A textbook example of super-high (> 100%) gross margins is that of Microsoft, back in the 80s, when they discovered that the cost of a marginal software sale was simply printing and shipping an addition CD ROM. Promoting CD ROM players was a rare case in which they got into hardware business side of things as grease for their software wheels.
My acumen in anticipating hot new business trends is below average, I'm afraid.
84% in business means you are going bankrupt.
Not if 84% represents your gross profit margin.
If you ever find a business making more than 25%, give me a shout.
Watching many years of the TV show The Profit has instilled the dictum to "know your numbers". I'll resort to an AI answer here, as a crutch:
Indeed, 86% gross margin is excellent. A textbook example of super-high (> 100%) gross margins is that of Microsoft, back in the 80s, when they discovered that the cost of a marginal software sale was simply printing and shipping an addition CD ROM. Promoting CD ROM players was a rare case in which they got into hardware business side of things as grease for their software wheels.
My acumen in anticipating hot new business trends is below average, I'm afraid.