lowmargin
Lowmargin, or low-margin, refers to a business, product, or transaction characterized by thin profit margins. In financial terms, margins are small relative to revenue, with gross margins often modest and operating or net margins even thinner after overhead costs. The term is commonly applied to sectors with intense price competition and commodity-like offerings where prices are driven down by frequent discounting, such as discount retail, grocery, some consumer electronics, and certain services.
Key features include the need for high sales volume to generate meaningful profits, heavy reliance on cost
Measurement components include gross margin (revenue minus cost of goods sold, divided by revenue), operating margin
Implications for strategy often focus on cost reduction, supply chain optimization, and capital efficiency. Firms may
Industry context varies; some businesses accept low margins as a deliberate volume-driven tactic, while others face