"the higher the better.
but anywhere between 20 to 40% is good
10 to 20% is ok
under 5% is not good" -previous answer
One must consider:
If you are a store that performs keystone (200% markup), then you are selling the item for twice it's value, and the other half of that goes into labor, utilities, rent, restocking, and advertising. When it's all said and done, according to the Michigan Retailers Association (2010) stated:
"an average 3.5 percent net profit for independent [retail] stores in 1999..."
I have also heard that most stores get around 2%.
What I am seeing today is disgusting. Companies are raising prices, hiring employees at the minimal dollar (many situations where the one job is not enough), and working the minimally paid labor force harder to compensate for a smaller work force. On top of that, a great deal of companies are outsourcing and buying oversees to reduce the overhead.
People wonder what is straining the economy. THIS is your answer.
Just because you can, doesn't mean you should. Please care about other human beings and the life sustainability of humankind. Every time I see a yacht, I think of how many people can barely afford to eat macaroni and cheese dinner so this clown can have this unnecessary expense. Many of these people probably claim to be Christians, amidst their gluttony.
So my answer is this, while you can increase your profit margins over 2%, consider your impact on others' lives with every choice that you make.
According to Chron, the average profit margin for furniture retailers is 2 percent. This is up from other retailers who normally have a 0.5 percent profit margin.
A distributer will sell wholesale goods to a retailer/dealer. The dealer/retailer will sell the same good at a profit to the consumer.
3%
margin vs markup As every coin has two sides, likewise, margin and markup are two accounting terms which refers to the two ways of looking at business profit. When the profit is addressed as the percentage of sales, it is called profit margin. Conversely, when profit is addressed as a percentage of cost, it is called as markup. While markup is nothing but an amount by which the cost of the product is increased by the seller to cover the expenses and profit and arrive at its selling price. On the other hand, the margin is simply the percentage of selling price i.e. profit. It is the difference between the selling price and cost price of the product. The terms margin and markup are very commonly juxtaposed by many accounting students, however, they are not one and the same thing. Content: Markup Vs Margin Comparison Chart Definition Key Differences Conclusion
its important because it used first to cover the the fixed expenses, and then whateverremains goes toward profit and if the contribution margin is not sufficient to cover the fixed expense, then a loss occurs for the period.
25%
It represents the profit margin of the retailer. Without that the retailer could not remain in business.
A profit margin you can live on.
Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin
Gross profit = sales - cost of good sold Gross profit margin = gross profit / sales *100 Gross profit = 240000- 108000 = 132000 Gross profit margin = 132000/240000 *100 Gross profit margin = 55%
15%
As much as you can get SUCKA!
I know for a fact that Walmart tries to make 50 points on most of it's items at a minimum. As a small clothing retailer, I target a blended profit margin of 40 points, to keep my prices lower than the competition. I maintain a very minimal overhead.
The margin should be around 10%.
Net Profit margin is an indicator of the profitability of an organization. This refers to the actual amount of profit the company makes after deducting taxes and operating expenses. All company's strive to attain a good or rather high net profit margin. A net profit margin is also an indicator of the ability of the organization to control cost and also a good pricing strategy.Formula:Net Profit Margin = (Net Profit (After Taxes)/ Revenue) * 100%Note: It is easy to confuse gross profit margin and net profit margin. Gross profit is the amount of money left after paying for the operating expenditure. Net profit is the amount of money left after paying for operating expenses as well as government taxes. This is the actual amount of profit that goes into your pocket.
A good profit margin for services is 15 to 25%. Selling goods along with the services can help offset profits can keep the business going.
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue