Sales margin refers to the difference between the revenue generated from the sale of a product or service and the cost of producing or acquiring that product or service. It is a key measure of profitability for a business, as it reflects the amount of profit made on each sale. A high sales margin indicates that a company is able to sell its products or services at a higher price than it costs to produce them, while a low sales margin may indicate that a company is struggling to cover its costs. Sales margin is often used by businesses to evaluate the success of their pricing strategies and to make informed decisions about future sales and production.