Operating income is the income obtained from the main business or other businesses, and this data is generally found in accounting statements. Operating cost generally refers to the cost of selling goods or providing services, which is generally found in accounting statements. The gross profit margin can be calculated by substituting the above operating income and operating cost into the gross profit margin calculation formula.
Gross profit and income in gross profit margin calculation usually refer to gross profit and income divided in a certain way in a certain period, corresponding to a certain division and a certain period. When calculating gross profit margin, the calculation caliber of income and cost is the same as that in accounting. For industrial and commercial enterprises, income refers to income excluding VAT output tax.
For construction enterprises, income includes tax. It is particularly important to note that the cost of commercial general taxpayer enterprises is calculated and determined according to the unit price excluding input tax. For industrial and commercial enterprises, gross profit depends on two factors, one is the quantity factor, that is, the quantity of sales, and the other is the quality factor, that is, the size of unit gross profit.
The factors affecting gross profit margin are as follows:
1, market competition
As the saying goes, things are rare. There are no such products in the market, or there are few such products, or compared with similar products in the market, such products have advantages in quality and functional value, and the product price naturally adopts a high-priced strategy. On the contrary, if the market is saturated by operating highway products, it can only be achieved by following the sales price of the crowd and realizing the average sales gross profit.
2, enterprise marketing
Is it to expand market share or other reasons? If it is to expand the market share, it is possible to open the market at a lower price first, and then readjust the pricing strategy according to the market acceptance after the market is stable. If it is to recover the investment as soon as possible, the enterprise may enter the market at a higher price.
With the strategy of gradual penetration, the market usually rewards mature products with high prices but small quantities and high prices. How to balance price and sales volume to maximize profits is an important issue that enterprises must face and cannot avoid in marketing planning.
3.R&D cost
A feature of modern economy is that products are updated quickly. If new products with emerging functions can be developed faster and better, and the products have advantages in function, use value and price, who can occupy the highest point in the market? Enterprises have a lot of R&D investment, usually they have more inventions, get more benefits from patent protection, and the gross profit of their products is also greater.