What is the profit margin on selling good in Islam?

Question

Salaam,

I am trying to start up a book selling business, but am unsure of what the profit margin should be Islamically? (I have read it should be a third).

Can anyone clear this matter?

Jazak Allah Khair

Answer 1

There is no such things as maximum profit achievable. However, if you sell a pen for 10 dollars and someone else sells it for 1, people will not buy from you so I think prices are set based on many factors.

Answer 2

The Islamic view on profit margins is that it should be fair. More widely, it's concerned about fairly sharing the burden of risk in any business venture.

How this should be interpreted will depend on the market you are working in and also upon the wider economy and also commercial law and obviously, your own inclinations and those of any partners that you have.