Today we challenge you to think about what goes into calculating your gross margin. Many business owners tell us that they don’t have any product costs and a gross margin in their business because they are a service business.

But… that doesn’t mean you don’t have cost of sales, it just means your calculation will include some different items.

The Vlog series comes from One Sherpa an online global membership community dedicated to helping small business owners succeed and prosper.

The series is filmed on location around Melbourne, Australia and answers questions commonly asked by small business owners.

This video is filmed from Blackburn Lake, Melbourne and answers the question Why is cost of sales becoming irrelevant?