Gross Vs. Net Margin | Ep 247

The slightest difference can make the biggest change. Today, Alex (@AlexHormozi) talks about one of the number one issues he faces when he talks to small to medium-sized business owners: knowing the difference between gross vs. net margin. By knowing the difference between these two, you will instantly shift how you view money and the growth of your business.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(0:47) - Difference between gross and net margin & calculation involved

(2:11) - Gross margin creates net margin. Alex's example explains why.

(4:38) - Increasing gross margin: decrease fulfillment cost, increase price now.

(6:42) - Greatly increasing margins scales and yields enormous profit.

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