Fridge Magnet Business Profit Margin: Costs & Worked Examples

The calculations below are hypothetical examples, not reported customer results or a promise of earnings.

Revenue is not profit

Revenue is units sold multiplied by realised price. Contribution subtracts variable costs; net profit also deducts fixed expenses. Include owner labour and equipment costs.

Full cost sheet

Include blanks, printing, tests and rejects, packaging, labour, fees, delivery absorbed, marketing and overhead. Use consistent tax treatment and business-specific advice where needed.

Example: 100 magnets

At an illustrative ₹80 selling price, 100 paid units generate ₹8,000 sales. Hypothetical ₹35-per-unit variable costs total ₹3,500, leaving ₹4,500 contribution. After ₹2,000 allocated fixed costs, ₹2,500 remains before further tax or omitted expenses.

Margin versus markup

In that example, ₹2,500 ÷ ₹8,000 is 31.25% margin before the stated further items. Markup uses cost as the denominator; margin uses revenue. They are different measures.

Equipment payback

Divide investment by realistic cash surplus available to repay it, not gross sales. Weak months, payment delays and refill stock can extend recovery. Production capacity does not establish sales demand.

Use your records

Check current 50×50mm fridge magnet material prices, record labour and rejects, and use the quotation guide.