Gross Vs. Net Margin | Ep 246

The Game with Alex Hormozi

Alex Hormozi

How To, Entrepreneurship, Business, Education

4.9 • 4.8K Ratings

🗓️ 3 November 2020

⏱️ 15 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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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Transcript

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0:00.0	Real quick, you guys already know that I don't run any ads on this and I don't sell anything.
0:04.6	The only ask that I can ever have are you guys that you help me spread the words.
0:07.8	We can have more entrepreneurs, make more money, feed their families,
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0:22.0	Take you 10 seconds or one type of the thumb.
0:24.0	It would mean the absolute world to me.
0:25.3	More importantly, it may change the world of someone else.
0:28.7	If you've ever struggled at the end of the month and worked all the way there
0:32.8	to only to look at the bank account and find that there was nothing there,
0:35.4	there was too little for you to take out and then been like,
0:37.8	I literally just worked for an entire month for nothing.
0:40.5	Then this video is for you.
0:42.3	Welcome to the game where we talk about how to get more customers,
0:44.8	how to make more customers, how to keep them longer,
0:46.8	and the many failures and lessons we have learned along the way.
0:49.2	I hope you enjoy and subscribe.
0:51.2	So one of the number one issues that I see when I talk to small business owners
0:54.0	or medium-sized business owners is that they don't have an adequate grasp
0:58.0	on the difference between gross and net margin.
1:00.0	And the reason I'm coloring the background green and I'm using my green pen
	...

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