Tuesday, July 18, 2006

What is net profit margin in grocery items? -

what is net profit margin in grocery items, I am talking about a range of items that can be stocked in a small mart type superstore, you know like petrol station marts. I just request a general idea, obviously there are going to be few producst with high margin and few with less. But on average how is the margin and is it a good business?

First, I live in the United States. Since you refer to petrol , then I assume that you live somewhere else. Please understand that I only know about the situation in the US. Having said that, in the US, the margin on grocery is very, very slender. The margin on tobacco and alcohol products is much higher, as is the margin on soft drinks, especially if they re fountain drinks. Grocery items in a convenience/petrol station don t turn over very quickly, and you have to take that into account. I am not including snack foods in the category of grocery items. To me, grocery items are things like a can of beans, or some mustard, or a loaf of bread, something like that. Something that a person would pick up on the way home, if she didn t want to stop at a grocery store.Edit: From what I understand, the profit margin is on the order of 1-2%. That s right, out of every dollar, you will earn one or two pennies worth of profit.

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