The “Latte Trap” and Your Bottom Line ☕️

Are you pricing your products based on “vibes” or “values”? 🧐

A lot of business owners look at their competitors, shave off 50 cents, and call it a pricing strategy.

But if you don’t know your COGS (Cost of Goods Sold), you’re essentially guessing if you’re actually making money.

COGS is the “Direct Cost” of doing business. 🛠️

It’s the ingredients in the cake, the packaging for the shipment, or the direct labor for the project.

Why is this the first thing I check in a set of books?📉

Margin Erosion: If your COGS goes up by 5% and you don’t raise your prices, that money comes directly out of your pocket.🎯

Efficiency: It tells us if you’re wasting materials or if your labor is taking too long to produce a result.⚖️

The Real Profit: You can’t pay your rent (Operating Expenses) until your COGS are deducted.

In 2026, “Revenue” is a vanity metric. “Gross Profit” is where the truth lives. 🤖

If you’re a service provider, don’t think you’re exempt! Your “COGS” might be the software seats you buy for clients or the contractors you hire to execute the work.

Do you know your Gross Profit margin?

If you’re not sure if your pricing is sustainable, let’s run the numbers together.👇 Click the link below for a Free Consultation.

Let’s make sure you’re keeping more of what you earn.

#SmallBusinessAccounting #COGS #ProfitMargins #BusinessGrowth #BookkeepingTips #EntrepreneurMindset