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Stocks to determine which one is better, investors often focus on the profit margins from buying and selling stocks . Examples Of High Profit Margin Industries High-end luxury goods and accessories companies often operate on high profit potential and low sales. Only a small number of expensive items are ordered to be created, such as a high-end car i.e. the unit is manufactured after securing an order from a customer, making it a low-cost process without a lot of operational overhead. Software or game companies may invest initially while developing a particular softwaregame and later a lot of
money by selling millions of copies with very little expenses. Entering into strategic agreements with hardware manufacturers, such as offering Windows and MS Office pre-installed on Dell laptops, reduces costs while maintaining revenues. Patented companies such as pharmaceuticals Phone Number Data may initially incur high research costs, but reap large profits with high profit margins while selling patented drugs without competition. Operating-intensive businesses such as transportation that may have to deal with fluctuating fuel prices, driver perks and retention, and vehicle maintenance typically have lower
profit margins. Agriculture-based enterprises typically have low profit margins due to weather uncertainty, high inventory, operational overhead, need for space for cultivation and storage, and resource-intensive activities. Automobiles also have low profit margins, as profits and sales are limited by intense competition, uncertain consumer demand, and the high operating expenses involved in developing dealer networks and logistics.Trademark monitoring Public perception of a brand plays an important role in the well-being and sustainability of a.
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