Gross margin by product

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Gross margin per product shows you how much profit you make on each item after covering your production costs. Basically, it's the difference between the selling price of a product and what it costs you to make it.

So, if you sell a product for $100 and the cost of production is $60, your gross margin is $40. It's a simple way to see how well each product is doing. It helps you identify the most profitable products, develop pricing strategies, and optimize your product mix.

Gross margin per product = (Sales revenue - COGS / Sales revenue) x 100

Example: If your sales revenue for a specific product type is $10,000 and your COGS is $2,000, your gross margin per product is [(10000-2000) / 10000 ] x 100 = 80%.

Take advantage of the ClickUp Sales Tracking Template to track the gross profit margin for finance directors email list each unit of product. You can adjust and review sales goals, track product performance, measure profits, and make data-driven sales and operations decisions.

Track sales and gross margin with ClickUp sales tracking template
Download this template
Track sales and gross margin with ClickUp sales tracking template

Revenue per unit
Revenue per unit is a measure of how much money each product brings in on average over a given period . It gives you a clear picture of how each item is performing and how it contributes to your overall sales team.

For example, if you sell a product for $50 and you have sold 100 units in a month, your revenue per unit is $50. This metric helps you identify which products are performing best and know where you should focus your sales efforts to improve profitability.

Revenue per unit = Total revenue / Total units sold

Example: You can use revenue per unit to calculate the revenue generated by each pricing tier (Basic, Professional, and Corporate) in a month.

Subscription Levels Total Subscribers Total Monthly Revenue ($) Revenue per Unit per Month ($)
Basic 7000 42,000 6
Professional 5000 25,000 5
Enterprise 3000 24,000 8
The Enterprise tier generates the highest revenue per unit despite having the lowest number of subscribers. This indicates how well your premium pricing strategy is working. This way, you can break down the value of each pricing tier and make strategic decisions about pricing, customer targets, promotional offers, etc.