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Gross Margin

Technical Finance Buzzword Finance

Revenue minus COGS, as a percentage. The number that tells you whether the business model works before overhead gets its say. Software brags about it; hardware endures it.

Heard in the wild

“Services run 30% gross margin; the software side runs 80%.”

Tone check: Technical

Know your industry's normal before judging a number. 30% is tragic in SaaS and heroic in construction.

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