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The prevalent misconception is that you cannot effectively expand a product lacking a defined gross margin from the beginning. Attempting to initiate with a negative margin and expecting substantial volumes is not feasible. Commencing in the Consumer Packaged Goods (CPG) sector is not advisable. It's crucial to aim for a 60% gross margin, and if achieved, things should work out. Falling below that threshold, around 50 or perhaps 40, enters a risky territory. Trying to compensate with volume might not yield the desired outcome.
By Devin @ Miller IPThe prevalent misconception is that you cannot effectively expand a product lacking a defined gross margin from the beginning. Attempting to initiate with a negative margin and expecting substantial volumes is not feasible. Commencing in the Consumer Packaged Goods (CPG) sector is not advisable. It's crucial to aim for a 60% gross margin, and if achieved, things should work out. Falling below that threshold, around 50 or perhaps 40, enters a risky territory. Trying to compensate with volume might not yield the desired outcome.