Gross margins and SaaS companies
I’ve argued that Gross Margin Dollars is more important than Gross Margin percent. Most business school grads are focused on the percent because it’s good for the stock price, when it’s the gross margin dollars which pays the light bill.<p>I worked an account where we made 60 points of margin on our base product, which we sold $50M/year.  We then sold $100M of an add-on product at 25 points of margin.  There were people arguing that we should stop selling the add-on product, until I pointed out that it contributed almost as much margin dollars as our primary, with almost no engineering effort.