financialSaaS
Gross Margin in SaaS (Software as a Service)
Revenue minus cost of goods sold, expressed as a percentage of revenue.
SaaS Gross Margin Benchmarks
Low
65%
25th percentile
Median
75%
50th percentile
High
85%
75th percentile
Elite
92%
Top 10%
High margins after development
Higher is better
What Affects Gross Margin?
Pricing power
Cost structure
Competitive pressure
Economies of scale
Product mix
Operational efficiency
How to Improve Gross Margin
1
Optimize pricing strategy
2
Reduce cost of goods sold
3
Improve operational efficiency
4
Increase value-added services
5
Monitor competitor pricing
6
Focus on higher-margin products
Gross Margin in Other Industries
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