How to calculate the gross profit margin of the hotel? computing formula

Gross profit margin is the percentage of gross profit and sales income (or operating income), where gross profit is the difference between income and operating cost corresponding to income.

Expressed by the formula: gross profit = gross profit/operating income × 100%= (main business income-main business cost)/main business income × 100%.

In terms of composition, gross profit margin is the difference between income and operating costs, but in fact this understanding confuses the concept of gross profit margin. In fact, the gross profit margin reflects the increased value of a commodity after its production is transformed into an internal system. In other words, the more value added, the more gross profit. For example, through the differentiated design of R&D, the product has added some functions compared with competitors, and the marginal price increase is positive, so the gross profit has also increased.

The gross profit margin of extended data usually depends on the following factors:

1, market competition

If there is no such product in the market, or there are few such products, or these products have advantages in quality and functional value compared with similar products in the market, then the price of products naturally adopts a high-priced strategy. On the contrary, if the market is saturated by operating high-road products or sunset industries, it can only be achieved by following the sales price of the crowd and realizing the average sales gross profit.

2.R&D cost

A feature of modern economy is that products are updated quickly. If new products with emerging functions can be developed faster and better, and the products have advantages in function, use value and price, who can occupy the highest point in the market? Enterprises have a large amount of R&D investment, usually they have many inventions, and they get more benefits from patent protection. Emerging products have great advantages in cost and efficacy, and their gross profit is also large.

3. Fixed costs

Mainly refers to the investment in fixed assets, such as machinery and equipment, workshop, workshop rent, etc., which constitute fixed manufacturing expenses. From a certain perspective, it also reflects the entry threshold of enterprises. In order to recover this huge investment cost, enterprises will also increase the gross profit of products. On the other hand, if enterprises invest less in machinery and equipment, or assemble and process them in the form of OEM, or entrust processing, part of their sales profits will be given to third-party manufacturers, and the gross profit of their products may only be average.

4. Technical cost

For example, if an enterprise produces patented products with independent intellectual property rights, especially invention patents and technology patents, and the patented products have advantages over the original similar products in the market in terms of product quality and product function, have cost advantages, are exclusive in competition, and naturally have the ability to raise prices. At this time, the gross profit of products is usually higher;

5, technical process

The technical requirements of employing people, the size of labor cost, the complex production technology of products, high technical content and high level of technicians used will naturally lead to high gross profit of their products. On the contrary, for highway products with simple technology and low technical content, it is certainly impossible to have much gross profit.

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