Going Mobile: Making Margin
Sorry, day traders. This column is not about making a quick, short-term profit in the stock market. It’s about solid business models that are based on -selling 12-volt products and -services at survivable margins. “Survivable” is a key word used because many in the 12-volt arena have forgotten what constitutes -profitability and what is needed to achieve it.
At this year’s CES, I sat in a large booth with a major manufacturer that was introducing a new product. The demonstration was -impressive. Then we got down to brass tacks. The best achievable margin on the product was about 30%. I pointed out that the average overhead in our industry is about 28%.
“Where do we make money on this?” I asked.