A measure of what is considered a good profit margin depends on the industry that your company is in. This is because the costs and materials needed for your products and services will differ from industry to industry. The location of your business would also play a part in determining profit margin as rental and payroll.
When it comes to measuring profitability, a gross profit margin is fine for determining the profitability of a particular item. Still, net profit margins are a better measure of overall profitability. Generally, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low. Hitting a 5-10% net profit margin can be considered a good profit margin.