The Top Line System enhances gross margin two ways-increased sales and decreased costs. In this example an average B2B company has sales at $10 million, gross margin of 40%, sales and marketing expense of 4.8% sales, and a projected sales increase of 10%. The result of this is $1 million in incremental sales, $400,000 in new gross margin, and a return on their sales/marketing expense of 83.3%.


In this example Top Line improves sales from the original forecasted 10% to 17% while decreasing the cost of sales/marketing from 4.8% to 4.45%. These two factors in turn increased gross margin by 70%, to $680,000. With Top Line performance the return on sales/marketing expense jumped to 152.8%.

Increased sales + decreased selling expense = improved gross margin

Click here for the Top Line System options and phases.