The Impact of Margin on the Performance of Trade Companies in Serbia
The Impact of Margin on the Performance of Trade Companies in Serbia

Summary/Abstract: As it is well known, one of the most important forms of profit in trading companies is the gross margin. By its size it should be as such to cover total operating expenses (business costs) and to gain certain amount of profit for the needs of further development and growth of the trading company. It is one of the “critical factors of business success” in trading enterprises. Based on the comparative analysis, in this article we have explored the impact of the gross margin on the performance of trade enterprises in selected countries (United States, European Union, Russia, China, Slovenia, Croatia and Bosnia and Herzegovina), with special emphasis on Serbia. It was concluded that the gross margin of trade in Serbia is at a lower level compared to many western countries, as well as Russia, and China. It was at about the same level as in Croatia, but higher than in Slovenia and Bosnia and Herzegovina. At a given level of gross margin profit increase can be primarily achieved by reducing operating costs by applying “new business model” in the trade of Serbia.

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