What percentage should be the gain for a business?

[King Belieal]

Pricing is one of the vital aspects of any business. And every business has to incorporate costs into it's pricing model in order to continue with production.

The other issue is that profits must be added to the pricing mechanism to fulfil the aim of business. What percentage from cost of production should the price of a product be in order to maximise fair profits? What is your recommended profit percentages.

 

[magnus2022]

Before considering price percentage, you have to determine and verify the prices of similar products in the market. Your price will not have much discrepancies with other similar products in the market. The best option is to use other products in the market as a guide.

 

[Fidelia]

Before determining the percentage gain, I think the nature of the products have to be considered. If you are selling a perishable product, the percentage of your profits won't be the same with someone selling durable products.

 

[deucher]

I think it depends a lot on the type of product you sell. I had a food truck where I received 15 percent of the net profit from one product. But I also had an online store where I could get more than 30 cents from the cost

 

[Kross]

Some products have high margins naturally. If you are selling a not too common product, you would be able to have a higher profit margin than when you sell common items. Profit margins for uncommon items can be as high as 50% while for common products, it would be 20% mostly.

 

[Augusta]

Before considering price percentage, you have to determine and verify the prices of similar products in the market. Your price will not have much discrepancies with other similar products in the market. The best option is to use other products in the market as a guide.

I totally agree with you even though your product might be of better quality but the price margin with that of your competition should not be too wide to still get sales