Gross Vs. Net Margin | Ep 247

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.9 • 4.4K 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 Podcast where we talk about how to get more customers, make more profit per customer, and keep them longer, and the many failures and lessons we have learned along the way to $100M in sales. We've got roll-up-your-sleeves kind of hustle with a little bit of cleverness and a lot of heart.

Timestamps:

(1:15) - The difference between gross and net margin & the calculations involved

(2:39) - Gross margin is the one that creates the net margin. Alex shows us an example of why this is the game for him

(5:06) - Increasing gross margin percentage: decrease the cost of fulfilling the thing & increase the price right now

(7:10) - Greatly increasing your margins is how you scale and get enormous profit. A lot of entrepreneurs hesitate to do this because they feel bad about charging a lot for their services/products

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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,
0:10.9	make better products, and have better experiences for their employees and customers.
0:14.9	The only way we do that is if you can rate and review and share this podcast.
0:19.4	The single thing that I have to do is leave review.
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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