Profit Margin
topic on 9 shows · 10 statements across 9 episodes
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10 statements about Profit Margin, every show
Glyman: One Penny Saved Equals 12 Pennies of Revenue Earned
“Average American business has an eight percent profit margin and so mathematically speaking, a penny saved is equivalent to 12 pennies of revenue earned”
A financially healthy consumer micro-app must maintain 70% profit margins
“You're looking to have something that's at least 70% profit margin. I would say it's for something to be super healthy.”
Ross: High margins trade competitive moat for market stability
“The real reason why you need higher margins is volatility, because if you have a razor thin margin and the market moves, you may not be able to raise more money, you may not be able to get a loan, and so what a margin does is it gives you stability and staying…”
Bhakti Modi: Mini beauty products yield poor margins due to packaging costs
“Yeah, the margins are not great in minis because you have to make that much product and your packaging still cost me the same, so.”
Evans: High-margin advertising disproportionately boosts retailers' bottom lines
“And so a relatively small, so an advertising business that is a small percentage of your top line is going to produce a very disproportionate amount of bottom line, which makes it very, very tempting.”
Spartz: Competition compresses business profit margins down to 5% over time
“Best predictor of margins is competition. Where there's competition, margins get compressed, and almost everybody squeezes down to, like, a five percent profit margin over time, and so the only way to, like, increase that number is to find some sort of market …”
Kannan: [24]7.ai's steady-state bottom-line margin will reach 20%
“Bottom line steady state will get to 20%. We are not there yet.”
Rice: Outperforming competitors on margin by 5–10% compounds into vastly higher valuation
“And slowly over five and 10 years, if your profit margin is five, 10% greater than your competition, eventually your valuation is going to be substantially greater than your competition.”
Rivest: Tiny profit margins can bankrupt high-revenue restaurant businesses
“You need a manager to open up a restaurant because the profit margins are so, so, so tiny. If you're not constantly You know, checking your numbers constantly, constantly, constantly. You can make loads of money and, well, revenues and close down because, you …”