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The short answer is any profit margin is good!

The long answer really depends on long term planning, the size of your business and the markets you are competing in.

Long term planning - profits fund business expansion, new product development, new and current market development etc.

A good rule of thumb is to keep profits above at least 10% while investing in new product developement, research and developent and investment in staff. Remember short term cost cutting may boost profits in the short term but will serverly damage your business in the long term , reguardless of what the so called "business experts" say.

The key to profitaqbility is process effiecency, an inefficent process wastes money!

The waste may be inefficent use of labour ( so you are wasting staff hours which cost) waste of material ( direct costs) or being unable to compete for orders (lost revenue costs).

The best people to make you process as efficient as possible are the staff so never fail to invest in your staff.

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Q: What is a good profit margin for a manufacture?
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