Business GCSE
Profit margin
What Profit margin means in Business GCSE, as defined for AQA.
Definitions of Profit margin
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Reference: AQA
Something directly affected by price, because price affects unit cost and therefore the price a business can charge.
Profit ÷ revenue × 100, showing how much of each pound of sales the business keeps.
A known margin built into every sale provided the cost estimate is accurate.
Topics that use Profit margin
- Good customer services (AQA GCSE)
- The elements of the marketing mix: price, product, promotion and place (4Ps) (AQA GCSE)
- The role of procurement (AQA GCSE)
Related terms
- Customer engagement
- Customer loyalty
- Customer loyalty and repeat purchase
- Customer satisfaction
- Just-in-Time (JIT)
- Price
- Unit cost
- Access to customers
Using Profit margin in the exam
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