Gross profit

Japanese: 粗利益

Also written as gross profit, it is the amount obtained by subtracting the purchase cost from the selling price of a product. For example, if a product is purchased for 500 yen and sold for 1000 yen, the gross profit is 500 yen. The ratio of this gross profit to the selling price is called the gross profit margin. Products with low gross profit margins cannot be profitable unless they are sold in large quantities, but products with high gross profit margins can be profitable even with small sales, so the gross profit margin has a major impact on sales methods. Until now, management that focuses on sales volume was mainstream, but recently there has been a shift in emphasis to management that focuses on profits, and securing this gross profit has become a major point. Generally, specialty stores have high gross profit margins, while supermarkets and discounters have low gross profit margins.

Source : Jericho Consulting Co., Ltd. About the Dictionary of Trade Terms

Japanese:

荒利益とも書き、商品の販売価格から仕入原価を差し引いた金額をいう。たとえば500円で仕入れた商品を1000円で販売すると粗利益は500円となる。この粗利益の販売価格に対する比率を粗利益率という。粗利益率が低い商品は大量販売をしなければ商売にならないが、粗利益率の高い商品は少量販売でも採算がとれることになり、粗利益率は販売方法に大きな影響を与える。これまでは、売上高重視の経営が主流を占めていたが、最近では利益重視の経営に比重が移りつつあり、この粗利益の確保が大きなポイントとなってきている。一般的に専門店は粗利益率が高く、スーパー・マーケットやディスカウンターの粗利益率は小さい。

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