Business "Profit Margins" Question

Hello,

We want to talk with other business experts and things to help come up with a good or "common" profit margin for services in the marketing industry.

We are a marketing company and deal in both internet marketing and local marketing, and we have been told a couple different ideal "Profit Margins" but we want to get a large pool and see what others think.

So please let us know what you think the profit margins should be for both:

• New Customer Profit Margin
• Existing Customer Profit Margin

Do you really believe there should be a difference between the two? Or should they be the same? Let me know what others think about this.

 

Hi
I am not sure you can determine ideal profit margins, the way I would approach it is by first finding out what your customers (existing and potential) are willing to pay for your product/service, there is only one selling price and that is what customers are prepared to pay. Once you have your selling price you calculate what your costs are in producing your goods/service, the difference is your margin, you then need to decide whether the margin you can make gives you the return you require.

 

HI
Nice Posts

 

Focus on giving quality marketing services and good profit margin will come to you

 

Margins are relative to the particular business. It is more about return on investment (both time and capital). You need to know what ROI you are looking for.

Tim

 

It's important to note that you can deduct part of your mortgage for a home office, but you have to pay capital gains tax on your house when you sell it.