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Sales & Retail vocabulary · Negotiation & Pricing

Margin

Meaning in sales & retail, with examples

/ˈmɑːrdʒɪn/nounCore term

In sales & retail, margin means: The difference between what a product sells for and what it costs, often shown as a percentage of the selling price.

In Turkish: kar marjı, marj

How it is used

Very common in sales, retail and pricing meetings. Products have high or low margins; discounts cut into or squeeze margin, so managers try to protect it. Gross margin is the margin before overhead costs such as rent and salaries.

Example sentences

  1. Accessories have a much higher margin than phones, so suggest them at the till.

  2. If we give them another 5 percent off, our margin on this deal will be almost zero.

Common collocations

  • profit margin
  • gross margin
  • high-margin products
  • protect our margin
  • squeeze margins
  • markupThe amount added to the cost of a product to set its selling price, usually shown as a percentage of the cost.
  • discountA reduction in the normal price of a product or service, given for example to win a deal, reward a loyal customer or sell old stock.
  • list priceThe official price of a product as shown in a price list or catalogue, before any discounts are applied.
  • bottom lineIn negotiation, the lowest price or worst terms you are willing to accept; more generally, a company's final profit, or the most important point.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Negotiation & Pricing

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