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Limits On Business Profits
Aoa,….if I show a product on my website which originally cost me around 200 RS and after marketing and other expenses it cost me around 800 Rs and I sell it to 5000 RS, and I send my customer the exactly same product as I show in my website, without any deceiving factor. If I do the marketing of product and glamorize the product. Is it a permissible profit for me. The product I am selling has a variable Fair value especially in the e commerce market. Because the profit margin I am keeping is too high and there are very high chances of it being not value for money. Though there are also of it being value for money for other customers. I AM NOT SENDING ANOTHER PRODUCT. I am sending the same as I show. I want to know Islamic teachings on it. Please do reply. Thank you!
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2 Replies
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Limits On Business Profits
updated 1 year, 3 months ago
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Islam does not pose any limitations on the amount of profits you can earn. The reason you want to sell your product at any given price point is a business decision which could be ethical or unethical. As long as such reason is not unethical, a higher price tag within itself is not prohibited in Islam.
With that said, higher price on a product does not necessarily translate into higher revenues for a business. If you sell 100 units of a product at $10 each, your revenue is much higher than if you sell only 20 units for $40 each. Pricing is a function of supply and demand, and determining the proper price point for any given product in any given market is a key business decision which can be a determining factor in the success and the failure of a business.
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