Raymond Cooper

From an introductory lesson on calculating gross protit margins. Welcome to this introductory lesson on gross profit margins. Now, just a heads up; you’ve all brought with you a calculator of your choice that can automatically compute your mark up, gross profit and selling price. That’s the good news. The bad news is that you’re not going to be allowed to use them during this session. Verbotten. Prohibited. But don’t panic, you’re going to learn a manual way to get the same results, a way that will teach you what gross profit is and why we so desperately need to understand its importance in the profitability of your restaurant, café, bar, pet shop or hair salon, whatever your retail operation may be. If you’re in business and you don’t understand your gross profit margin and you don’t have a target for it, then you’re in the business of going out of business. We’ll deal in future sessions on this two day course with things like check average, year to date sales, year on year sales, yields, seat turnover, all sort of goodies that are going to help you hone and tune your operation. But this is the starting point, gross profit, learn this, understand this and all the other will fall into place. Promise. ©Ray Cooper