smaller profit margin

USAGE SUMMARY

The phrase "smaller profit margin" is correct and usable in written English.
It can be used when discussing financial performance, particularly in relation to the profitability of a business or product. Example: "Due to increased competition, our company is experiencing a smaller profit margin this quarter compared to last."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

14 human-written examples

Computer hardware typically has a much smaller profit margin than software.

The New York Times

He's content to have a smaller profit margin each year and bring home less than his parents and grandparents did.

The New York Times - Magazine

The farm is keeping about half of its 1,200 acres empty this year, which means fewer temporary workers and a smaller profit margin.

The New York Times

Comparison of the applicability between chilling and fogging shows that, inlet fogging is superior in power efficiency at ta = 15 20 °C though it gains smaller profit margin than inlet chilling.

Applied Energy

With all these extra costs, franchisees are more likely to have a smaller profit margin than the corporate store and, thus, less funds to use for a pay hike.

The Guardian - Business

Some economists say they believe that these higher labor costs might be passed along to consumers in the form of higher prices for goods and services, and that employers might also just accept a smaller profit margin when wages rise.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

46 human-written examples

Smaller cars mean smaller profit margins, but the Spark is made in Korea and can compete on price.

The New York Times

Smaller vehicles, though, mean smaller profit margins for automakers.

The New York Times

But each generation of smaller, faster, more efficient machines means smaller profit margins as well.

The New York Times

For example, LinkedIn, which has smaller profit margins than Facebook, trades at 671 times earnings.

The New York Times

Spending on rentals of DVDs, which provide smaller profit margins than sales, was up about 10percentt.

The New York Times

Expert writing Tips

Best practice

When discussing the impact of increased costs on a business, use "smaller profit margin" to clearly indicate that profitability has been negatively affected. For instance: "Due to rising material costs, the company is facing a "smaller profit margin" on its products."

Common error

Avoid using "smaller profit margin" when you actually mean lower revenue. Revenue is the total income, while profit margin is the percentage of revenue remaining after deducting costs. For instance, don't say "The company had a "smaller profit margin" this year due to decreased sales" if the issue is solely about sales volume, not profitability per sale.

Linguistic Context

The phrase "smaller profit margin" functions primarily as a noun phrase acting as a subject complement or object in a sentence. Ludwig AI confirms its grammatical correctness and usability in describing financial performance.

Expression frequency: Uncommon

Frequent in

News & Media

70%

Formal & Business

15%

Science

15%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

The phrase "smaller profit margin" is a grammatically sound and frequently employed term, especially within news and media, business and science domains. As Ludwig AI confirms, it serves as a noun phrase and its primary function is to explain or describe financial performance, particularly a decrease in profitability. Related terms include "reduced profit margin" and "narrower profit margin", providing alternative ways to express similar concepts. A key writing consideration is to distinguish between reduced profitability per sale and revenue volume, avoiding the use of "smaller profit margin" when lower revenue is the sole factor. When using "smaller profit margin" remember that it commonly implies a comparision with a previous margin or to another one.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

reduced profit margin

Focuses on the action of reducing the profit margin.

narrower profit margin

Emphasizes the reduced width or extent of the profit margin.

thinner profit margin

Suggests a less substantial profit margin.

lower profit margin

Directly indicates a decrease in the profit margin.

decreased profit margin

Highlights the state of having a profit margin that has diminished.

diminished profit margin

Emphasizes the gradual reduction of the profit margin.

tighter profit margin

Indicates a more constrained or restricted profit margin.

shrunken profit margin

Implies that the profit margin has contracted or become smaller.

compressed profit margin

Suggests that external forces have pushed the profit margin down.

eroded profit margin

Indicates a gradual wearing away or deterioration of the profit margin.

FAQs

How can I use "smaller profit margin" in a sentence?

You can use "smaller profit margin" to describe situations where a business is making less profit on each sale or unit. For example: "The increased competition led to a "smaller profit margin" for all companies in the sector."

What are some alternatives to saying "smaller profit margin"?

You can use alternatives like "reduced profit margin", "narrower profit margin", or "lower profit margin" depending on the context.

Is it correct to say "small profit margin" instead of "smaller profit margin"?

Both "small profit margin" and "smaller profit margin" are grammatically correct, but they convey slightly different meanings. "Small profit margin" describes the absolute size of the margin, while "smaller profit margin" usually implies a comparison to a previous margin or another entity's margin.

What factors can contribute to a "smaller profit margin"?

Several factors can lead to a "smaller profit margin", including increased production costs, higher marketing expenses, greater competition, and economic downturns. These factors can erode profitability and reduce the margin between revenue and expenses.