What is the typical cost of goods sold percentage range for hard goods?

The correct answer reflects a typical cost of goods sold (COGS) percentage range for hard goods, which often falls between 65% and 75%. This percentage indicates the proportion of expenses attributed to the direct costs of producing or purchasing the hard goods that a business sells. Understanding this range is vital for businesses in hard goods sectors because it helps them assess profitability and pricing strategies.

A COGS percentage in the specified range is common in industries that deal with tangible products, reflecting the investment needed in raw materials, production, labor, and overhead. Companies must manage this percentage effectively to ensure they maintain a healthy gross margin while remaining competitive in the market. This range also provides insight into operational efficiency and inventory management practices within businesses dealing with hard goods.