lunedì 13 maggio 2013
Is the Gross Margin Percentege (GM%) important for our customer?
Somethimes EPM consultants are more solution oriented than customer oriented. This means that for someone is more important to find a quick and dirty solution (IT solution) instead of thinking about the important things to offer to our clients.
For example many consultants doesn't knows the importance of Gross Margin Percentege (GM%) and doesn't understand the value of such important indicator.
But, what is the GM%? Why can be so important?
The calculation is: (Sales - Cost of goods sold) / Sales
For example, a company has sales of $1,000,000 and cost of goods sold of $750,000, which results in a gross margin of $250,000 and a gross margin percentage of 25%.
This percentage is useful when tracked on a trend line, to see if there are any significant changes that may require further investigation. A decline in the gross margin percentage may be cause for considerable concern, since it can imply a decline in the competitiveness of a company's products and/or services.
Gross margin includes an allocation of factory overhead costs, some of which may be fixed or mixed costs.
The perfect EPM consultant should know all the main aspect of a financial statement in order to suggest the customer the best implementation method not only in terms of speed and performance, but also in terms of control and comprehension of their business.
What do you think about the importance of values communication?
Iscriviti a:
Commenti sul post (Atom)
Nessun commento:
Posta un commento