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By Jon Fernquest

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[Thai Economics Library | Archives (for history)]
April 10, 2008

Profit margin

the profit margin (noun) - difference between price and cost of producing a product

high profit margins
low profit margins
gross profit margins
narrow profit margins
reduce profit margins
squeeze profit margins
erode profit margins
cut profit margins
pre-tax profit margins
working with tight profit margins
manufacturers with high gross margins
don't have much profit margin on that product

inflate the profit margin
a declining profit margin
protecting profit margins
dwindling profit margins
the outcry over declining profit margins

slimmer profit margins
profit margins are already wafer thin
allow for factors in your profit margin

a fair profit margin to add to the total
offer a high profit margin
maintain your profit margin
make your sale while still maintaining your profit margin

gross profit margin below expectations
taxes exceed the profit margin
net profit margin is lower than forecast
swing from a loss to a profit margin of 10%

it's quite a small profit margin for any business to be making
can only obtain a limited profit margin on the goods or services that he supplies
the profit margin admits of the taking of such a risk
a printer has specially increased his profit margin to cover a risk factor
maximise your profit margin

a minimum profit margin you have to achieve as a manager
the increased level of competition eroded profit margins
the profit margins in Britain have been higher than abroad

each unit sold earns a gross profit margin of 20 baht
average net profit margin per gallon
a rapidly decreasing profit margin
experiencing a rapidly decreasing profit margin and is therefore loath to invest

a firm operating on a small profit margin where a small reduction in costs means a large increase in profits
operators bent on improving profit margins instead of competing by price for market share
sudden movements in exchange and interest rates can erode profit margins
insist on immediate payment pointing out the fairly small profit margins on which the business is run
retail businesses who have cut profit margins to the bone to survive
a sharp fall in the price of raw materials should boost manufacturers' profit margins
to maintain their profit margins, the industries will be forced to raise their prices


Example sentences:


* "And the new interest rate rise could wipe out retail businesses who have cut profit margins to the bone to survive."

* "All these factors must be allowed for, particularly in your profit margins."

* "The newspapers had been full of holiday bargains and talk of overcapacity in an industry in which profit margins are already wafer thin."

* "In tne fast food business, every second counts and a rapid turnover of customers is essential to maximise profit margins."

* "They made a conscious decision not to deal with the new carpet superstores, largely because profit margins would be so low in that their bulk purchasing power made them able to demand low margins."

* "The experts fear the advertising campaign will end up biting into the profit margins."

* "If a customer makes a part payment, the haulier should insist on immediate payment of the balance, pointing out, perhaps, the fairly small profit margins on which the business is run."

* "Profit margins are low."

* "A close relationship emerges between the trend of profit margins and workload."

* "Sudden movements in exchange and interest rates can erode profit margins, strain your cashflow and shrink overall profits."

* "Business has become scarcer, competition keener and profit margins slimmer."

* "The net profit margin is lower than forecast due to the increase in interest rates and certain items of expenditure not anticipated at the time of the forecast."

* "Looking at changes in sales in the various business segments is important when analysing overall profit margin."

* The profit margin on one sheet was much lower than the other and Emily drew in her breath sharply.

* "Both are high profit margin products with slumping sales that are sold mostly to long-time customers who can't break the habit."

* "The gross profit margin was a few percentage points below expectations."

* The taxes due on a relatively low priced painting often exceed the profit margin, especially if it concerns goods offered on consignment.


* "The attractions of these products are that they store well, are easily obtained and offer a high profit margin.

* "They describe two companies, one of which is experiencing a rapidly decreasing profit margin and is therefore loath to invest."

* "The review of financial statements reveals a steady reduction of the gross profit margin and an increasing reliance on debt finance shown by the increasing interest charge."

* But with a declining profit margin and declining return on capital the company needed a new injection of resources.

A lower profit margin meant that industrialists could not afford to invest enough either to expand or to modernise their plant.

* "The agent must ensure the promoter makes enough money, and that the manager doesn't squeeze the promoter's profit margin too much."

* "The developers' profit margin is thus squeezed to a point where they cannot (should they, uncharacteristically, be so minded) spend enough on quality and design."

* "The increased general level of international competition, which may have eroded profit margins in all the countries concerned, must be distinguished from sudden shifts in the relative competitiveness of individual countries."


* "It points out that if pesticide use can be reduced with minimal reduction in crop yields, risks to health and the environment can be cut, sustainability promoted and lower input costs protecting profit margins."

* "She says the profit margins in Britain have been higher than abroad and its a good thing that prices are now falling, although it will mean some of the luxury element is lost."

* "This activity, in so far as it is successful, will be inflationary because, to maintain their profit margins, the industries will be forced to raise their prices."

* "Stock investors, on the other hand, take comfort from a sharp fall in the price of raw materials during the second half of April, which should boost manufacturers' profit margins."

* "I mean they were talking on the video about profit margins, but he didn't company he was supposed to achieve, presumably there was a minimum for all three of them."

* "With a turnover of over 13 million it's quite a small profit margin for any business to be making but I could still do with tickets being half the price they are."

* "We don't have much profit margin on our new snack food yet."

* "Everyone knows that 1990 will be a tough year, with bookings something like 40 per cent down, the public playing a lament in J. Major, the tour operators bent on improving profit margins instead of competing by price for market share, with heavily reduced capacity particularly at the cheaper end of the range."

* "If you can agree a finance adjusted price then you can make your sale while still maintaining your profit margin, and your customer can get the extended credit terms that he wants and presumably needs."

* "The decline was attributed to very soft prices for finished clothing leather in the second half, which eroded profit margins."

profit margins of X on turnover of Y
profit margins were reduced by nearly four percentage points

* Profit margins were reduced by nearly four percentage points to 10 per cent on turnover of 36.84million.

* "There is in any case less incentive for efficient production than in a firm operating on a small profit margin where a small reduction in costs means a large increase in profits."

* "In Japan our small but beautiful medical information business increased its profits by forty five percent and we had a swing from a loss to a profit margin of ten percent."

* "Unisys concentrated on selling large proprietary mainframe computers, which cost several million pounds, and have a gross profit margin of 80 per cent."

* "The profit-seeking firm faces the difficult task of searching for the appropriate profit-maximising output and profit margin."

* "What is a fair profit margin to add to this total?"

* "If they had any reservations about the amenities he was so tastelessly flaunting, it was only to ask themselves what his profit margin must be if he could afford this stuff."

* "With liquid assets of 1.3 million, a profit margin of 18 per cent and a return of 15 per cent on capital the county must be the envy of many businesses totally unconnected with cricket."

* As a rule-of-thumb pricing method, they decide to add a 10 per cent profit margin or mark-up to average cost and so set a price of ?4.95.

* "An increase in the profit margin to 30 per cent would give a price of 552 baht."

* "The addition of a profit margin to an estimate of average cost to determine price is called cost-plus pricing, mark-up pricing or full-cost pricing."

* "Each product that is sold will earn a gross profit margin of 20 baht, and so the company would need to sell 10,000 units to break even."

* "High gearing is common, so key ratios are gross profit margin and stock turnover ratio."

* "The goodwill figure in such cases can be derived from the average net profit margin per gallon, multiplied by the daily throughput."

* "For instance, at the most basic level, the higher the profit margin the supplier receives for performing a contract, the greater the liability he can reasonably be asked to accept for failure to perform as promised."

* "The seller can only obtain a limited profit margin on the goods or services that he supplies, while the economic loss suffered by the buyer for his failure to perform may be unknown to the seller, not easily forecast, and far greater than the profit margin the seller enj oys on the transaction."

* "In appropriate circumstances, and where the profit margin admits of the taking of such a risk, sellers do sometimes accept liability for economic loss, but then it is usually with some upper limit, or through the operation of a liquidated damages clause."
* "Any evidence that, for example, a printer has specially increased his profit margin to cover a risk factor, would be fatal to a s2(5) claim."

* "Remember this, your purpose as an executive, is to provide quality food at prices your clients can afford, while maximising your profit margin, am I correct?"

* "The manufacturer would thus have to spend a lot on mass advertising to create brand loyalty for the product, or attempt to `;push'; the product through the channel by providing trade incentives, with probably a lower end price than competitive products coupled with a larger profit margin for retailers."

* "Indeed, for all firms there must exist output levels and profit margins which maximise their profits."

* "The outcry over declining profit margins seems to show that British commercial enterprise had been sapped by decades of trading on advantageous terms as the only great exporter of manufactured goods."

* "So because a client's main aim behind using facilities management services is to cut costs, the supplier's profit margins suffer."

* "Greedy for profits and market share, they shaved profit margins and incurred unwarranted risks."

* "Profit margins are low, even for the better-off market sellers, who can afford to rent stalls."


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