Minimum percentage of profit on product

[EMMANUEL]

I do ask myself, “what is a good profit margin?” A good margin will vary considerably by industry, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low

 

[Heatman]

A few days ago I made a product which costs me Rs. 50. This product of mine will be sold at medical stores and general stores. I need advice.What should be the minimum price of this product for user?

Personally, I recommend that you take time to calculate the quantity of all your products and have something in mind about the profit you want to make from it. You can't just produce one product and want to sell, it goes with the quantity to determine the figures we are looking at.

 

[jay]

0.05%. It's funny right? Well that's for one product as you'd asked. In most cases, the product goes with 2 to 3 products and that's why I don't look at my individual gain profit but collectively. Because, when I calculate what the product goes with I'll be having between 5% to 10% and that's where the profit sets in

 

[Ibrahim1]

First of all whats the market prize of the product and also you really need to strategize about your products and check and balance everything before giving prize and do the calculations of everything you used for your products before giving prize

 

[Mujahid12]

A few days ago I made a product which costs me Rs. 50. This product of mine will be sold at medical stores and general stores. I need advice.What should be the minimum price of this product for user?

Reasonable profit is the right of the business man, so profit should be affordable for customer,so I think 20% profit is is excellent and reasonable and you can earn the good profit from it and customers will also happy from this.

 

[joy101]

You need to plan to know the profit you will get from the market sell, before starting, profit cannot be determined the Percentage, but the profit can be determined by the occurrence by the products or services sold.

 

[Mama]

A few days ago I made a product which costs me Rs. 50. This product of mine will be sold at medical stores and general stores. I need advice.What should be the minimum price of this product for use

Try to calculate the amount you spent on the producing the product, plus the stress time,then you will be able to know how much to add to make a profit. But with the look of things, selling at Rs.60 is not too much.

 

[Thosynho]

A few days ago I made a product which costs me Rs. 50. This product of mine will be sold at medical stores and general stores. I need advice.What should be the minimum price of this product for user?

There cannot be a fixed minimum percentage of profit to make on a product neither can there be universal maximum percentage of profit making on a product. Setting or determining the profit margin for any product depends on the cost of production per unit and demand rate.

 

[Ayokex]

There is actually no generally acceptable minimum profit margin for an investment but the school of thought has it that a business owner get some level of satisfaction based on certain percentage of profit. In my own opinion, if a business gives at least 10% profit within a period of one month or less, such business is profitable. Some investment can give more, it must not be lesser than 10%.

 

[Azam786]

A few days ago I made a product which costs me Rs. 50. This product of mine will be sold at medical stores and general stores. I need advice.What should be the minimum price of this product for user?

I think that's how much you need this project If the market price is 80 rupees You put the price at Rs 75Today, if you keep it a little lower, your purchases will be higher The more money you get, the more money you have

 

[Heatman]

There is actually no generally acceptable minimum profit margin for an investment but the school of thought has it that a business owner get some level of satisfaction based on certain percentage of profit. In my own opinion, if a business gives at least 10% profit within a period of one month or less, such business is profitable. Some investment can give more, it must not be lesser than 10%.

Exactly, 10% profit is more like a general acceptable point of profit for most businesses and investments likewise. I was told one time by my investment manager in UK that any investment that offers more than 10% return of investment should be examined thoroughly to avoid getting in bed with scammers.

 

[Diamond07]

It all depends on your target customers. The availability of the product as well as it's efficiency. You should also put in consideration the competitive market. Profit could be a 40% of your total cost or more

 

[GIFTMICHAEL]

Sometimes price can shutdown a business when it is above the market pricing standard.
For you to understand what price to fix on your product know how much other people in the same line of business are selling theirs after gathering your information you may decide to sell normal, higher or lower as the case may be.
You shouldn't be carried away by high profit margin.

 

[Abbas007]

I think if there are more customers buying the item then you should keep the profit price low because the higher the sale the higher the price and if you keep the margin more then the item will be less sale then you will not get much profit.

 

[Richmond funke abosede]

In accounting and finance, a profit margin is a measure of a company’s earnings (or profits) relative to its revenue. The three main profit margin metrics are gross profit margin (total revenue minus cost of goods sold (COGS) ), operating profit margin (revenue minus COGS and operating expenses), and net profit margin (revenue minus all expenses, including interest and taxes). This guide will cover formulas and examples, and even provide an Excel template you can use to calculate the numbers on your own.

 

[Seun4luv]

First, find your gross profit, or the difference between the revenue #200 and the cost #150. To find the margin, divide gross profit by the revenue. To make the margin a percentage, multiply the result by 100. The margin is 25%.

 

[Richard92]

This all depends on the kind of products, some products like consumable goods the most times have one to five percent interest rate on their products, both other goods like house properties land, machines they most times have thirty to forty percent interest rate on their products.

 

[Abibatabosede]

I believe it is the business owner or producer that knows what it costs him to produce the product ranging from amount of money, stress past through,etc.he should also consider what is going to take him to market the product and what the bills or charges he has to pay.

 

[Zevin]

When you are adding your commission to the product, make sure the price stands reasonable. If you add a high commission charge, your product will cost high and may not be able to sell. You will also have to keep your price lower than the price of the same product offered by your competitor. I believe 10-15 percent is the best profit margin for any product.

 

[Lyrrex]

There are a whole lots of factors to be considered when calculating the total number of profits to be taken on your business. For example you need to put into consideration the total amount of money on your transportation and some other factors like shop rent and payment of employee