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Definition of 'Margin Creep'
Margin creep refers to the behavior of a company that chooses to focus only on the high-end, high-margin products, even if customers show an inclination towards more value-oriented products and/or services. A product's margin is the difference between the cost of the good or service and the retail price; the greater the difference, the higher the margin.
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Investopedia explains 'Margin Creep'
While any products or services that are successfully marketed and sold may result in a solid margin, other potential sales will be lost if value-minded consumers are price-sensitive. The tendency for margin creep within a company can have long-term implications on its sustainability.
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Search results for 'Margin Creep'
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http://stocks.investopedia.com/stock-analysis/2011/Tyco-Goes-Three-For-One-TYC-COV-SI-UTX-HON-ABB-EMR0921.aspx
... Though rumors had started to creep out a few days ago, Tyco announced Monday ... business
in revenue terms, but it has the highest operating profit margin and a ...
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http://stocks.investopedia.com/stock-analysis/moneyshow/2BabyConglomeratestoWatch.aspx
... is difficult, but a solid indicator is when they find ways to creep into new end ...
The result has been earnings before interest (EBI) margin growth of nearly ten ...
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http://www.investopedia.com/university/value-investing/value-investing6.asp
... of the fundamental principles of value investing is to build a margin of safety ... critical
standpoint when evaluating numbers, fear and excitement creep in when ...
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http://www.investopedia.com/university/mutualfunds/mutualfunds5.asp
... This makes the category averages creep higher than they would have if the ... Learn about
profit margin analysis, effective tax rate, return on assets, return on ...
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