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Reid Hoffman's Blitzscaling Toolkit
Reid Hoffman's Blitzscaling Toolkit: How your team can put blitzscaling into action
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Appendix

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High gross margins

The more money you make per item sold, the better.

Summary

Most companies we focus on in Blitzscaling have 60%, 70%, or 80% gross margins.
Operational challenges scale based on revenue or unit sales volume, not gross margin.
Even though gross margins mean a lot to the seller, they are irrelevant to the buyer.

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Exercise

1
Revenue
$100,000
2
Cost of Goods Sold
$40,000
There are no rows in this table
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👉 Your gross margin is
60
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%


Gross margins from various industries
1
Construction
19%
2
Auto Repair & Maintenance
21%
3
Retail
22%
4
Maintenance Services
30%
5
Transportation
47%
6
Restaurants
67%
7
Hotels & Hospitality
76%
8
Tax Services
90%
There are no rows in this table
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