Appendix

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
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1
Revenue
$100,000
2
Cost of Goods Sold
$40,000
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👉 Your gross margin is
60
%

Gross margins from various industries
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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%
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