Gross margin is one of the most important numbers in your business. Gross Margin (percentage) is a good indicator that your business is healthy: Both on the selling/strategy end indicating your customer is willing to pay you well for what you offer, and on the operations end demonstrating that you can efficiently produce what the customer wants. The trend of this number over time can tell quite the story. When it starts to fade, as it often can, it is a reason for concern.  This week we talk about Gross Margin erosion, why it happens and what you should do if you find yourself in this situation. ----- * Do you love The Growth Whisperers and want to see our smiling faces? Subscribe to our YouTube channel. * Do you enjoy our content? Rate our show! * Is Twitter your thing? Follow @Evolution_Perth and @lawrenceandco1 to learn more about building enduring great companies. *Like LinkedIn? Follow https://www.linkedin.com/in/bradleygiles/ and https://www.linkedin.com/in/coachkevinlawrence/  -----   ----- Links: *https://evolutionpartners.com.au/ *https://lawrenceandco.com/ Newsletters *https://evolutionpartners.com.au/articles *https://lawrenceandco.com/business-resources ----- Related episodes #74 The Power and Struggle of saying no #120 The 20 Mile March concept By Jim Collins: Thrive in Uncertainty   ----- Additional episodes you might enjoy: #84 The 7 common strategy mistakes from Michael Porter #130 Jim Collins: Level 5 leaders #104 The habits successful leaders use to prepare each week #50 Jim Collins Flywheel Concept: How to build unstoppable momentum in your company #96 The three main barriers to consistent growth #90 Meeting Rhythm - The Annual Strategic Thinking meeting #110 Five most common questions we get about Scaling Up #89 The 4 different types of A players