oboloo Glossary

Margin Business

oboloo Glossary

Margin Business

Margin business is a simple concept, but one that has profound implications for today’s businesses. Essentially, margin business is any kind of business in which you can make a profit off the difference between what you sell and what it costs you to produce. In other words, if the markup on a product or service exceeds its variable costs, then it can be classified as a margin business. With margin business, companies strive to maximize profit by understanding their customers’ needs and anticipating their response to price changes. By staying ahead of the curve, businesses can generate a hefty return on their investments and ensure long-term success.