GLOSSARY TERM

Gross margin

Gross margin is the amount of money your business keeps after paying for the products you sell. It shows how much profit you’re making from your inventory before covering other expenses like rent or salaries. A higher gross margin means you’re making more profit on each sale, which is critical for running a successful cannabis retail business. How to calculate gross margin: (Sales Revenue − Cost of Goods Sold (COGS) ​/ sales revenue) x 100