The 5% rule

Joseph Sugarman says that when your returns are less than 5%, you're not at your full sales potential in retail marketing nor in mail order and well over 5% means you're losing money. Anybody care to comment?

Originally Posted by Wonderboy Joseph Sugarman says that when your returns are less than 5%, you're not at your full sales potential in retail marketing nor in mail order and well over 5% means you're losing money. Anybody care to comment?

I'm not sure what brilliant Sugarman was referring to, but
suspect he means scaling up to 5% (added efforts and
profits exist) and then over 5% possibly something related
to economies of scale. The last point on over 5% has me
curious as well. Anyone?

Wonderboy, you have my ears, can you elaborate. From what I read I see that an increase is better then nothing. But in Sales the Skys the limit???

Cheers