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profit margin

profit margin

42 3.6
Difference between the cost to make or buy something and its selling price shown as a percent
  • noun
  • /ˈprɒfɪt ˈmɑːrdʒɪn/
  • Specialized
translation icon : margen de beneficio
  • If a reduction in the profit margin exists, then a reduction in cash exists.
  • a high profit margin
  • a low profit margin
  • total profit margin

So we're seeing prices go down and hitting profit margins.

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Examples

  • The key players are relatively few, and the profit margins are extremely high.

    Academic text (2004)
  • After all, you want to cover your expenses and work towards a good profit margin.

    Academic text (2000)
  • So it's, it's got like a a pretty good profit margin and it's going to get better.

  • What else has that kind of profit margin?

  • If you can sell it again, your profit margin should be even better the second time around.

    Academic text (1993)
  • Our profit margins are much higher on wine than fruit.

  • Table 1 calculations include a 15 percent profit margin on capital and operating expenses.

    Academic text (2001)
  • Such firms must ensure that profit margins do not fall too low by controlling costs and investments carefully.

    Academic text (1996)
  • The goal of North End Fisheries... is to consistently increase our annual profit margin.

  • The insurance companies' profit margin is often between 3% and 5%.

Synonyms

margin
vsprofit margin
  • Specialized
92 5.5

The amount a seller keeps after costs, usually shown as a percent

is the specific percentage measuring how profitable a product or business is
margin of profit
vsprofit margin
  • Specialized
1 3.9

The percent of sales that remains as money after paying costs

is the percentage that shows how profitable a product or business is

How Profitable

profit margin
  • Specialized
42 3.6
to break even
27 3.3
loss
695 2.1

Surface Forms

profit margin singular

Morphology

profit + margin

The meaning of 'profit margin' is directly and compositionally derived from 'profit' (net gain) and 'margin' (difference/percentage) so a learner who knows both words can infer it refers to the difference between cost and selling price, often expressed as a percentage. This noun+noun construction is transparent and common across many languages and business contexts, making it readily understandable to B1 learners familiar with the constituents.

Etymology

Profit margin comes from the image of a thin margin or edge between two numbers: what something costs and what you sell it for. So, the profit is the small 'gap' between cost and price, and the term now shows how much money a product or business makes.