Business Sense

The Gross Margin Ladder

Foundational · RankingSample

Five business models, five very different relationships between revenue and cost of revenue.

Order them from highest to lowest typical gross margin.

Highest gross margin at the top, lowest at the bottom.
  1. 1.Grocery retail
  2. 2.Airline
  3. 3.Pure software (SaaS)
  4. 4.Management consulting
  5. 5.Branded pharmaceuticals