We run on gross margin

If we had a ten-million-dollar business, but sold things for what they cost us, we’d have no money to pay fixed costs, let alone have a profit.

We run our business not on gross sales, but on gross margin. We have to sell things for more than the cost of producing and delivering them. If we want to be competitive, then we must control our costs, so we can make a gross margin at a price the market likes.