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Originally Posted by FrustratedReader
I've worked at a senior level in a ISP selling data centre capacity. I know what the profit margin is. It's better than most retailing.
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Ridiculously so.
https://www.investopedia.com/ask/ans...ail-sector.asp
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The most profitable retail sub-sectors by net margin are usually the building supply and distribution retailers. Companies in these sectors often achieve average net margins around 5%, almost double the average for the online retail sub-sector.
Certain markets, such as retail electronics and retail clothing, have to adapt to constant changes in consumer tastes. A company might be very profitable in the first quarter of the year and struggle during the fourth quarter, due to cyclical consumer spending patterns. Best Buy, for example—one of the major electronics retailers in the US, posted a net margin of 2.4% during its fiscal first quarter of 2018 but managed to generate a net margin of 3.5% for the first quarter of the fiscal year 2019.
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Supermarkets are leaner than average, in the 1-2% range.
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The supermarket business is a low-margin industry, with the average profit margin for supermarkets typically ranging from 1 to 2 percent. However, natural, organic and gourmet food markets enjoy higher averages from 3.5 to 6 percent.
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AWS has been reported as 25% profit margin but it is going higher as they boost their database, graphics and AI services. So 10x higher.
Tradpub is also low margin, typically in the 5-7%, even with maybe 25% unit sales coming from digital and audio.