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I would say there isn't such a thing as "the right amount of profit margin" as much as there is "the right way to secure a profit margin". The more your margin
by zamadatix 3y ago
I would say there isn't such a thing as "the right amount of profit margin" as much as there is "the right way to secure a profit margin". The more your margin is able to exist because competition isn't allowed the less right it is, be it 1% or 99% in absolute terms.
- deleted 3y ago[deleted]
- lotsofpulp 3y agoIs profit margin not partly a function of competition? A retail business is easily replicated, hence retail businesses have minuscule profit margin. Insurance companies have lots of competition, also low profit margins. Making a top of the line smartphone does not have a lot of competition, hence higher profit margins. Medicine is patented and hence does not have a lot of competition, also higher profit margins.