What's your Price?

It is very important to know your profit margin. Stores like Wal-Mart have low profit margins because they sell low-priced items in HIGH volumes. Places like Starbucks and Dunkin Donuts would be similar, because they both sell thousands of product everyday company-wide... for a products that are roughly $4.00. So, if I were to open a coffee shop, I would need to be aware of my profit margin because I can't have cheap prices if I can't sell enough coffee. My prices would have to be higher, or I would have to shut down.