Profit margins are the percentage of your retail price that Retailers keep as profit.
For example, if you have a $1.00 product with a $0.80 cost, the Retailer's profit margin is 20%. Profit margins are based on percentage, not on cost.
There are some Retailers who have margin requirements that you must meet, or that you may need to maintain when your product has a retail and cost change.
To Maintain Existing Margins, you must keep the same margin that you currently are set up with. You may calculate a profit margin using the following formula:
(Retail - Cost)/Retail
If the retailer has a Margin Requirement then a specific percentage must be kept on all products and price changes.