It costs too much to produce

Gross Profit for a company must be positive. Your Gross Profit is your Income – COGS. COGS, or Cost of Goods Sold, is everything you need to make your product.  It is labor to produce your product or service, materials to make your product, etc.  For most companies it is not administration, and it is not “expenses” like rent, utilities and trash.  For a list of typical COGS and expenses click here.