opportunity 97 of 150 No, I am not suggesting that margins do not matter. They matter a great deal, and for most businesses, the bigger those margins, the better. What business needs to ‘forget’, or set aside, however, is the notion that margins should be set by way of an accepted formula or standard percentage. […]

opportunity 97 of 150 No, I am not suggesting that margins do not matter. They matter a great deal, and for most businesses, the bigger those margins, the better. What business needs to ‘forget’, or set aside, however, is the notion that margins should be set by way of an accepted formula or standard percentage. Many businesses still set prices using a ‘formulaic’ percentage. Very often, these margins are used across industries. All too often, businesses set prices using rules of thumb such as: Setting professional service fees on the basis of – one third for the employee, one third for overheads and one third for the bottom line. Retailers working on a 50% margin on wholesale prices which, in turn, with the wholesaler receiving a 50% margin on manufacturer pricing (or something similar) These formulas, and many others like them, make very little sense. They give no attention whatsoever…