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Expanding Your Gross Margin in Distribution

Source: Epicor
The recent recession has forced distributors and manufacturers to pay closer attention to their bottom lines and to the financial factors that contribute to profitability. Gross margin is a popular measure of a company’s financial condition; but using gross margin without understanding how it affects profitability and business strategy can be misleading. An understanding of the relationship between the financial components of gross margin is essential for formulating sales and product strategies, and to implement techniques enabling an increase in net profit and maximization of return on investment.
 
 
 
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