Profit Margins

As time goes by, competition becomes fiercer. Your customers demand higher quality and lower prices on one side and on the other side your costs are increasing. All the costs have risen such as chemicals, dyes, water, electricity, coal, steam, and labour.

Many people do not realise the impact even a small cost reduction can have on the bottom line.

Take for a example a company the has a net margin of 10%. That means for every 100 sold, it costs them 90 to produce with a profit of 10.