Margin

Margin

What remains from a sale after the cost of what was sold.

Also called

You will also see this written as gross margin and profit margin. Kenyan businesses use these interchangeably in conversation even where the underlying things differ, which is worth knowing when someone tells you what you need.

Where you meet this

Margin is what remains from a sale after what the goods cost you. The reason so many Kenyan retailers cannot state theirs is that cost means the buying price plus transport plus what was lost or damaged getting it to the shelf, and margin computed against the buying price alone flatters every line in the shop.

What it sits alongside

In Kenyan business records margin sits alongside Turnover, Pricing and Inventory. The pages for each explain how they connect.

Related terms

• Turnover
• Inventory
• Cost of goods

Common questions