Minimum percentage of profit on product

[Heatman]

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.

Most people don't seem to understand that they are not the only one offering the same products and services to the customers in the state. Competitive prices rates are what keeps you in business with lots of other businesses trying to take over from you.

 

[GIFTMICHAEL]

Most people don't seem to understand that they are not the only one offering the same products and services to the customers in the state. Competitive prices rates are what keeps you in business with lots of other businesses trying to take over from you.

Exactly that is the power of competition. The product you are selling in the market has other people selling them too. Like you said competitive price rate is what keeps somebody in business with lots of other competitors.

 

[Kehinde]

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.

 

[Greatguy1]

Peg your profit margin at between 20 to 25%. Take into consideration factors like inflation, increase in running costs and government policies. Also note that other underlining factors like your raw materials and running cost could go higher in the near future. Think of things like employee salary and plan towards it.

 

[Mariyam]

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?

Net profit margin analysis is trickier than crunching numbers in a net profit formula. There's no universal rule such as "every business should have at least a 17% net profit margin." It depends on your industry, your company's age and stability and your goals for the future.

 

[Adebayonle7]

That's great. If your product has a high demand and better quality than others, you can sell it for 70 rupees leaving you with a profit of 20rupees. If you do your findings and check the market, compare prices of other wholesalers and how much the medical stores sell them out, you might need to adjust the selling price. One thing about products you produce is to also try hard to get your production materials at a cheaper price. If you do this, you be less worried and not sell for a very amount.
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That's great. If your product has a high demand and better quality than others, you can sell it for 70 rupees leaving you with a profit of 20rupees. If you do your findings and check the market, compare prices of other wholesalers and how much the medical stores sell them out, you might need to adjust the selling price. One thing about products you produce is to also try hard to get your production materials at a cheaper price. If you do this, you be less worried and not sell for a very amount.

 

[Thosynho]

Yes I quite

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%.

Yes I quite agree with your assertion here that there is generally no acceptable minimum profit margin for an investment but one should be careful of greed. Some investors are too greedy to make crazy profit on their investment.

 

[Hasan Raza]

First of all it depends upon the product and its quality. Second one the packing mean how much grams or mg of packing. After that you should search in market the demand of your product and its competitive product whole sale price. Then you can decide its sale price easily by yourself.

 

[Ifective]

Profit made by business depends on the business itself. It is very important that you do not add a very high percentage of profit or very low profit.
Based on general terms, 20% of profit is not a bad idea especially when the business is booming.
Overtime, the the profit could increase as time goes on.
The higher the business keep going, the more profit one can make

 

[Smithkid]

The profit you should calculate on the product mainly depends on the cost price and the demand for the product too. If you find more customers for the product, you can decide to increase your price by a decent margin and if there are not many customers for the product, you have to be targetting lower profit too.

 

[Ralphjoe]

The minimum percentage for a profit on a business's product will be determined by the effort the company put into that product i e the resources, time and effort the company has expended on the product, this is why the profit of some similar products are quite different.

 

[Sammyesx]

For a starter, you should make at least 20% of your total cost of making the product, and as time goes on and you start having more customers then you can increase your profit, but for every increase in profit there should be atleast a little increase in quality.

 

[Zamaney]

First, find your gross profit, or the difference between the revenue Rs 200 and the cost Rs 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%

 

[Onachukwu]

You may be asking yourself, “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.

 

[BuchiBankz]

You need to check for production cost and transportation cost as well to ascertain how much should be placed on the same goods

 

[Mahnoor]

The profit margin on a product you sell is the difference between your cost and the selling price. Cost can be the wholesale price you pay your supplier or the cost to manufacture the product if you produce it yourself. Subtract the cost from the sale price to get profit margin, and divide the margin into the sale price for the profit margin percentage. For example, you sell a product for $100 that costs your business $60. The profit margin is $40 – or 40 percent of the selling price.
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The profit margin on a product you sell is the difference between your cost and the selling price. Cost can be the wholesale price you pay your supplier or the cost to manufacture the product if you produce it yourself. Subtract the cost from the sale price to get profit margin, and divide the margin into the sale price for the profit margin percentage. For example, you sell a product for $100 that costs your business $60. The profit margin is $40 – or 40 percent of the selling price.

 

[nasiusman95]

You may be asking yourself, “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

 

[Kaindio Agnes Wanja]

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?

This one will depend with the buying price of the products .
So the profit will be determined by the price at which you bought it and should not exceed 30%.
The reason behind this is that if you choose to earn much profit,you won't get client to buy

 

[Chumzy]

I don't think that it should have a straightforward answer because of some factors. For example fast moving consumer goods are assumed to be sold with less. But slower goods are naturally sold with more profit figure so the business type is important.

 

[KvngMurphy]

Before going ahead to set prices first try to find out the actual market price of the product and how much interest you will have if it's sold for the same amount or slightly below market prices. After finding out then you can be able to know the price at which you will sell.