COGS stands for Cost of Goods Sold, the direct costs of producing or purchasing the goods a company sells, for example raw materials, purchase price, and direct production costs. COGS is subtracted from revenue to find the gross margin, which makes it one of the most important figures to know when calculating real profit, for example with POAS.
If an online store sells an item for $50 that costs $20 to buy and ship home, COGS is $20 and the gross profit is $30.
Read on
More on strategy and branding:
Book a free 30-minute call and we will translate the theory into something that moves your numbers.
