BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Retailers generally have low profit margins due to the nature of their businesses. Online retailers tend to have higher profit margins than brick-and-mortar retailers. In order to generate respectable profit margins, companies need to generate high sales, known as a low-margin/high-volume sales strategy.

Detailed explanation-2: -The retail margin equals the difference between the price that you pay for an item and the price at which you sell the the item to customers. For example, if you have to pay your retailers $15 for each sweater and you then sell it to customers for $39, your retail margin equals $24.

Detailed explanation-3: -What Is Low Profit Margin? If you have a low profit margin this means that the selling price you chose for goods isn’t much higher than its cost. If your company has a low profit margin, you’re likely in a very competitive industry, offering products that aren’t highly unique.

Detailed explanation-4: -As a general rule of thumb, a 10% net profit margin is deemed average, while a 20% margin is deemed high and 5% low.