Gross Margin is a profitability metric representing the percentage of revenue our Client brands, clubs, events and teams retain after subtracting direct costs (i.e., Cost of Goods Sold, or GOGS). Gross Margin is calculated using the formula: ((Selling Price – COGS)/Selling Price). The following table represents the calculated Gross Margin for our Tacx® Daiya™ 550ml if sold within the European Union (EU), assuming a retail price of €12,50¹ per bottle. A Water Bottle is considered an ‘Accessory’ in the bicycle industry; a category of products having a 50% gross margin, on average. If the example bottle was sale priced at €9,95, then the calculated Gross Margin of a Tacx® Daiya™ 550ml with one print color is 49,7%. We recognize Clients outside the EU may incur other COGS (e.g., import fees, shipping, etc.), but a higher retail price (e.g., €15¹) may ‘absorb’ or ‘offset’ these costs in order to realize a Gross Margin commensurate with the industry and market.
| QUANTITY / # COLORS | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| 100 | 60,0% | 59,6% | - | - | - | - |
| 200 | 68,0% | 67,6% | - | - | - | - |
| 300 | 72,0% | 71,6% | - | - | - | - |
| 500 | 76,0% | 75,6% | 75,2% | 74,8% | 74,4% | 74,0% |
| 1.000 | 80,0% | 79,6% | 79,2% | 78,8% | 78,4% | 78,0% |
| 2.000 | 82,0% | 81,6% | 81,2% | 80,8% | 80,4% | 80,0% |
| 3.000 | 84,0% | 83,6% | 83,2% | 82,8% | 82,4% | 82,0% |
| 5.000 | 86,0% | 85,6% | 85,2% | 84,8% | 84,4% | 84,0% |
| 10.000 | 88,0% | 87,6% | 87,2% | 86,8% | 86,4% | 86,0% |
¹The suggested retail price (SRP) of Tacx® Daiya™ 550ml is €12,50/€15 depending on brand, industry, or market.
