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"Profit margin" does not mean what you seem to think it means. Check your units.
by judk 12y ago
"Profit margin" does not mean what you seem to think it means. Check your units.
- rayiner 12y agoProfit margin is very important in this context, because it's indicative of how much of the money you pay as a customer turns into profit in some shareholder's pocket. If you're using profits as justification for the claim that some company is gouging you, profit margin is a much more relevant metric than total profits. HP is much more profitable than Facebook, but I don't think anyone would argue that they're gouging customers. They sell products at razor-thin margins in an insanely competitive market.