Contribution Margin vs. Gross Margin

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The contribution margin is the same as the gross margin but without the fixed costs included.

It includes only direct costs and variable costs.

This means the contribution margin will always be the same or higher than the gross margin.

The contribution margin is used for setting the selling price of a product and determining the profitability of the product.

Fixed costs are considered sunk costs and should not be used in the calculation of product prices.

Contribution margin can be used to understand the profitability of each product as it eliminates non-direct costs from the equation.

The profits from the contribution margin calculation can be applied to the company’s overhead.

Consider using contribution margin in your pricing and product performance calculations.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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On this episode of Investor Connect, Hall welcomes Erwin Jager, Founder and CEO at Wreckdock Vessel Recycling.

Located in Dubai, Saudi Arabia, Wreckdock is an innovative offshore recycling company that completely dismantles seagoing vessels. Wreckdock collects, processes, and recycles all released materials and resells them to international market parties. 

Wreckdock includes the trade and supply of steel products, financial buying and selling operations and international trade in ferrous and non-ferrous metals and oil. Wreckdock is developing a new sustainable facility including a complete employee compound based in Saudi Arabia.

Erwin Jager is committed to reversing waste in the maritime industry, generating jobs, and strengthening the local economy in the Kingdom of Saudi Arabia. The new maritime recycling facility is set to launch in 2025, with the potential to transform the industry's approach to ship recycling and dismantle sustainably. Under his leadership, the company has the mission to become one of the most respected 

and successful ship recycling companies in the Middle East and Asia.

Erwin talks about his background, how he transitioned to vessel recycling, the opportunities he sees in the market, and the reasons behind establishing the company's operations in Saudi Arabia and Iraq. Erwin underlines the environmental significance of vessel recycling and the potential for growth in this industry.

Visit Wreckdock Vessel Recycling at http://www.wreckdock.com, and on www.linkedin.com/company/wreckdock

Reach out to Erwin at erwin@wreckdock.com, and on www.linkedin.com/in/e-r-w-i-n-j-a-g-e-r-2-0-2-3-.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https:/_/tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.