Margin Magic: Four Steps to Building Greater Profit

Another important aspect of managing the margin is the dance between margin dollars and margin percentage. Controlling the overall margin percentage obviously is important and can be achieved by watching the margin percentage of every item offered. But it’s the margin dollars that pay the bills - more margin dollars will leave more to cover expenses and profit. Therefore, blending the importance of both aspects will lead you to vary the margin percentage for different items based on price points, product trends, product lifecycles, etc., in order to deliver the most margin dollars possible.