Definition of a Margin Monster – a retail person who is protective of pricing at a set Margin Percentage they believe is the lowest they can use in a particular category or department.
There are a lot of Margin Monsters out there. Fall brings them out, at least in discussion forums and phone conversations. Fall buying shows and planning for next year means even more Margin discussion and drive for higher Margins.
While there are always a few Margin Monsters surfacing during this time of year, we're seeing more of them this year than usual. Why? Possibly a combination of factors contribute to increased sightings. Declining Revenues and the need for more Margin Percentage to cover Expenses, increased knowledge of Margin Percentages and their possible effect on Profitability and others lead many to continue to either increase Margin Percentage or hold the line on current ones, when it may not be advisable to do so. I’ll explain later.