Minimum Margin for Retail – How Low Can You Go

Don’t sell below your minimum margin—you’ll lose money.

Cover

• Variable cost – COGS
• Fixed cost share – Rent, salary, utilities per unit
• Wastage – Some loss on perishables

Example

COGS ₹80, fixed cost share ₹5, wastage ₹2. Minimum = ₹87. Selling at ₹85 = loss.

For Promotions

Discount from margin, not below variable cost. Margin calculator. Break-even.