profit margin

created by Caseman
(idea) by Caseman (?) (print)   (I like it!) Sat Nov 13 1999 at 14:37:55
A basic cornerstone of the capitalist business model. Provides incentive for inventors to create products, and for investors and marketeers to manufacture and distribute them.
(idea) by eric+ (5.7 y) (print)   (I like it!) Mon Jul 10 2000 at 20:20:09

Just to make it explicit, the profit margin is the calculated as: 

                 gross - expenses
profit margin = ------------------
                     gross

Depending on what sort of business you're in, a good profit margin is anywhere from 5% (in groceries, for example) to 100% (selling drugs). It sure as hell better be positive, though.

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