Comment Comment by chrisseaton > there are business people who are apparently content running a business with such slim margins ... I'm left wondering why anyone would even botherA percentage margin is expressed relative to the value of the sales.Low margin on high value sales is as good as high margin on low value sales, in terms of how much money you make.Low margin is only a problem in low value sales.Why shouldn’t people running a business with extremely high value sales, due to low margins? I can’t see what you’d find that a bizarre thing to do?I’d be happy making 5% if I was selling a jumbo jet a day, for example.You can’t criticise just the margin in isolation like you’ve done. parent chrisseaton 6 years ago
A percentage margin is expressed relative to the value of the sales.
Low margin on high value sales is as good as high margin on low value sales, in terms of how much money you make.
Low margin is only a problem in low value sales.
Why shouldn’t people running a business with extremely high value sales, due to low margins? I can’t see what you’d find that a bizarre thing to do?
I’d be happy making 5% if I was selling a jumbo jet a day, for example.
You can’t criticise just the margin in isolation like you’ve done.