CHARACTERISTIC #4–HIGH PROFIT MARGIN

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There are a million ways to make a million dollars.
One of them is to sell low profit margin items to
tons of people—the mindset known as “feed the
masses and you’ll dine with the classes.”

Well, I say the heck with the masses—or even more,
the heck with low profit margins! There are some
businesses that have five,10, and 20 percent profit
margins, and people still get into these businesses.

But you know what the problem is with low profit
margins? There’s no margin for error.That’s suicidal.
There will ALWAYS be errors. If you set yourself up
in a low margin business, you’re asking for trouble.
It’s a one-way ticket to bankruptcy court.

A friend of mine bought a dollar store so he could
be his own boss. It’s always been his dream to
own a retail business.The profit margin of a
typical dollar store is10 percent. That means
when he sells something for a buck, he gets to
keep ten cents. Later the same friend told me,
“Mr., the two happiest moments of my life were
the day I bought the dollar store and the day I SOLD it.”

Succeeding in businessis difficult enough. Why
make it even harder on yourself by starting a
low-profit margin business?

I like BIG profit margins—the bigger the better. For
me to even consider a business, the profit margin
has to be at least 100 percent and up. So if I am
selling something for two hundred dollars, I want
to keep AT LEAST one hundred dollars for myself.
Preferably it’s 200 percent, 500 percent or even
more, otherwise I won’t get into that business.

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