I have found that some saas companies seem to have a lot of Lebanon Phone Number revenue. But when you look at the profit. There are very few profits. And even the more customers. The more money you lose. So I am in the “Saas capital winter? What the market lacks is not money. But good products” will say: Before financing expansion. The gross profit margin of saas products needs to be raised above 70%. If your saas product has not yet reached 70% gross profit margin. But begins to rapidly expand customer acquisition. It is possible that the more customers you have.
What is the gross profit margin of SaaS products?
The faster you will die. What I want to share with you Lebanon Phone Number today is “Why is the gross profit margin of saas products so important?” and “How do we increase the gross profit margin of saas products?” 1. What is the gross profit margin of saas products? Saas product gross margin refers to: The proportion of the revenue obtained by the product after deducting the cost of goods sold (cogs. Cost of goods sold) in the total revenue. The cost of goods sold for saas products usually includes : The cost of customer support team; 2. The cost of helping customers access/customized demand research and development; 3. The cost of customer success team;
Why is the gross profit margin of SaaS products so important?
The cost of product services. The calculation formula is: If this saas metric is not done well. The more customers you have. The faster you die It should be noted that the cost here does not include the cost of product development. Nor the cost of customer acquisition. But only to calculate “How much it will cost to serve this group of customers”. 2. Why is the gross profit margin of saas products so important? Only if the gross profit margin is high enough. You can be competitive enough. Software products typically have higher gross margins than traditional brick-and-mortar products. For example. In car building. Tesla is very powerful.