Margin-focused

A business or strategy orientation primarily concerned with the profitability of a product, service, or overall enterprise. This approach prioritizes achieving or improving profit margins – the difference between revenue and costs. It emphasizes cost control, pricing strategies, and optimizing revenue generation to maximize financial returns, often at the expense of other considerations such as market share or brand reputation. A margin-focused entity might be willing to sacrifice volume for a higher profit per unit.

Margin-focused meaning with examples

• The company adopted a margin-focused strategy, implementing stringent cost-cutting measures and raising prices. This shift aimed to boost profitability even if it meant losing some customers to competitors. The CEO believed higher margins were critical for shareholder value and future investments, regardless of any market erosion.
• A margin-focused investment firm carefully evaluates each deal to ensure sufficient return on investment, rejecting projects with low-profit margins, and prioritizing those with the potential for strong, sustained financial performance, which is often at a higher risk.
• The new marketing campaign was designed to appeal to a more affluent customer base, thus enabling a premium pricing strategy which would make sure the product was more margin-focused. The previous high volume of the product, at a lower price, was unsustainable, the company now aims to maximize its profits by focusing on high margin customers.
• In a competitive market, the store became margin-focused by sourcing cheaper materials. This included changing the location for production as well as making cuts to the working wage. It reduced costs and raised prices to increase profitability. This resulted in some customer backlash due to lower product quality.
• The executive team's decisions were predominantly margin-focused, emphasizing profitability over market share growth in its quarterly earnings reports. While this provided short-term financial stability, it created a high degree of pressure on the sales team and potentially damaged relationships with suppliers.