Margin Creep

Margin creep refers to the behavior of a company that chooses to focus only on the high-end, high-margin products, even if customers show an inclination towards more value-oriented products and/or services. A product’s margin is the difference between the cost of the good or service and the retail price; the greater the difference, the higher the margin.

While any products or services that are successfully marketed and sold may result in a solid margin, other potential sales will be lost if value-minded consumers are price-sensitive. The tendency for margin creep within a company can have long-term implications on its sustainability.

作为开放的信息平台,本站内容来自授权或网络,仅代表作者本人观点。如文章出现侵权、违规及其他不当言论,请联系客服。