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high-margin

UK[ˌhaɪ ˈmɑːdʒɪn]US[ˌhaɪ ˈmɑːrdʒɪn]
adj

(of a product or business activity) generating a large amount of profit in relation to the cost of sales.

Morpheme Breakdown

high
margin
high

adjective

margin

noun

Etymology

The compound adjective 'high-margin' is a modern financial term built from two ancient roots. 'High' descends from the Proto-Germanic hauhaz, related to concepts of elevation and greatness. 'Margin' traces back to the Proto-Indo-European root merg-, meaning "boundary, border," which evolved into the Latin margō. In commerce, 'margin' metaphorically shifted from a physical edge to the figurative space between cost and price, i.e., profit. Therefore, 'high-margin' logically combines these ideas to describe a business scenario where this profitable gap or "border" is notably large or elevated.

Analysis

Structure: high (adjective) + margin (noun) - high: From Old English hēah, meaning "of great height, lofty, tall, exalted." It functions as an adjective modifying the noun 'margin' to indicate a large degree or amount. - margin: From Latin margō (genitive marginis), meaning "edge, brink, border." In financial contexts, it refers to the difference between the cost and the selling price, representing profit. It functions as the core noun being modified.

Examples

The company focuses on developing innovative, high-margin software products.

Luxury brands typically operate in the high-margin segment of the market.

Shifting their portfolio towards more high-margin services improved the firm's overall profitability.

high-margin – Meaning, Etymology & Word Origin | OpenEtymology