Profit Margin

Different companies have different profit margins based upon the products they sell. Many products such as groceries and essentials are priced low with a low profit margin so that consumers will buy their product. These companies rely heavily on amount sold over profit margin to make their money. Other organizations such as electronic parts and pieces have a high profit margin so that they don't have to sell nearly as much to make a profit and stay in business. A lot of this pricing is determined by competition as well as volume of sales.