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Margin Structure Definition

Margin structure – n : a representation of the value chain for a given product or service showing what percentage of each dollar of end-user, point -of-purchase revenue accrues to each step in the value chain (e.g., invention, design/engineering, manufacturing, marketing/branding, distribution/inventory/sales).  The percentage remaining after accounting for each step in the value chain equals the operating margin, or pre-tax profit expressed as a percent of the selling price of the product or service.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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