1, on the entity industry, the profit can reach more than 6% is considered pass
Profit is not gross profit, although many entities in the industry gross profit is very high, but the real gross profit is very low, such as taking the catering industry as an example.
The catering industry's gross profit margin is relatively high, the average can reach 45-60% or so, however, the catering industry is also a more labor intensive industry. After deducting the rent, labor costs, utilities and other costs, in fact, the final net profit can be in 15%, even if it is relatively high, generally between 8-12% can still be earned.
Other commercial aspects, the profit is even lower, can reach 8% profit goods even if it is better. Commodities from the factory through the distribution chain to reach the consumer, basically will produce about 40% of the added value. However, various costs offset, the final profit is about 6%, basically relying on the flow of goods to make money.
Of course, there are some special commodities, the profit is relatively high, such as drugs, health care products, etc., the gross margin of some of these commodities is as high as 60% or more, and the final profit will be about 30%.
Most of the above belong to the FMCG category, where profits are even lower. Then, the consumer goods side of the profits are also declining.
Because the source of profit in addition to high gross margins, but also need a high turnover rate, there are gross profit and turnover to generate profits. And although consumer goods have high gross margins, but the turnover is much slower than FMCG, such as clothing, home, furniture, daily necessities, automobiles, cell phones, electrical appliances and so on.
The consumer goods market is now compressed profit margins in addition to improve turnover and concessions, there are competitors to pressure each other to lead to, in addition to their own brand awareness and technical barriers to the goods, other than the existence of competing pressures.
2, even if the same industry, different channels, profits are also very different
For example, the apparel industry, e-commerce and brick-and-mortar stores, different channels, but also different profits in this industry. One of the major advantages of e-commerce is that it can remove the intermediate channels, directly to the consumer, and save this part of the cost, invested in the e-commerce can be on the e-commerce to get a better flow, relative to the physical store, the price will be a little lower.
And the circulation of the middleman this piece of profit becomes lower, many do clothing profits surprisingly come from the end of the season to deal with the remaining clothing paragraph. I have to say, the development of the times is too fast, clothing wholesalers the best times have passed.
3, more than the industry average profit of 50% of the industry, are considered profiteering
Now, in addition to high-tech and monopoly industries, basically very few profiteering industry, these industries are either no competitors, or an oligopoly in a certain area, there is pricing authority, other industries can exceed the average profit of more than 50 percent of the industry, are considered profiteering industry.
In short, now do a lot of physical industry is to survive in the cracks, some business vision is good, can get a period of high profits, but in the long run, the future business is likely to enter the micro-profit era!