What is considered a low profit margin?

Asked 5 years ago

I am trading in beauty products and my profit margin is around 30%. It's a home-based business so no rent or salary or wages are included. I have experienced that my total profit is used to buy inventory. Is 30% profit quite low? Or anyone here is managing profit to make purchases as well as having some amount for a living? I am new to business so I don't have any idea. Your help is needed. Thank you!

Home-based business Profit margin Beauty products Profit

David Hay

Thursday, July 08, 2021

30% without any overheads is very low yes.  It basically comes down to margins.  How much can you purchase the products for and then how much can you sell them on for.   Ideally you want a 100% mark up on products you are selling.  research your competition and plan accordingly.