The Brilliant Margin™ | Where Profit Meets Personality (and a Spreadsheet)

The headlines say it all: “Markets in chaos,” “Inflation rising,” “Economists disagree about absolutely everything.”

If you’re a small business owner or founder trying to make sense of your margins right now, you’re not alone. The economy is jittery, customers are cautious, and cost structures look like a toddler rearranged them with finger paint.

But here’s the truth no one wants to say out loud: Margins still matter—maybe even more in a recession.

When everyone else is panicking, the businesses that thrive are the ones who get laser-focused on their numbers and adapt with clarity, not chaos.

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🔢 What Are Margins (Again)?

Just in case we need a refresher while sipping our fourth coffee of the day:

• Gross Margin = Revenue – Cost of Goods Sold (COGS) / Revenue
• Net Margin = Net Profit / Revenue

Put simply: Margins measure how much money you actually keep after spending money to earn money. If revenue is a popularity contest, margin is your actual bank balance.

And in a recession? Margins tell you if your business is surviving or silently bleeding.

“Revenue is vanity, profit is sanity, and cash is king.” — Alan Miltz, financial strategist[1]

Recessions Are Margin Magnifiers

When costs rise (hello, inflation), your margins take a direct hit. But that’s not the end of the story.

The real question is: Where can you tighten without shrinking?

Here are three core truths about margins in a recession:

1. Revenue Can Lie. Margin Never Does.

Just because sales look steady doesn’t mean profitability is. If you’re discounting just to survive, you might be losing more than you realize.

“Don’t just chase revenue. Watch your margins like your future depends on it—because it does.” — The Brilliant Margin™[2]

2. Lean Doesn’t Mean Starved

Cutting fat is smart. Cutting bone is dumb. Prioritize margin-preserving cuts, like:

• Canceling vanity subscriptions
• Renegotiating vendor contracts
• Batch working and automating admin

3. Your Pricing Strategy Is Your Profit Strategy

If your prices haven’t changed since 2019, you’re essentially losing money in 2025 dollars.

“Raising prices isn’t greedy—it’s what allows you to keep serving people well.” — Ron Baker, value pricing expert[3]

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🌿 Playing the Long Game: U.S. Policy & Pro-American Business

Despite short-term pain, recent U.S. economic strategies are leaning toward reshoring, revitalizing domestic production, and empowering American businesses to become more self-sustaining.

If you’re a small business owner with domestic suppliers or local products, you’re already aligned with this trend.

“Buy American” = Build American Margins

Policy shifts toward local manufacturing and tighter import controls can create pricing power for American brands.

• Tariffs protect local producers from being undercut by overseas goods
• Supply chain incentives lower long-term cost volatility
• American-made is increasingly part of the consumer’s value system

“We’re not just in an economic reset. We’re in a cultural one, too.” — Morgan Housel, finance author[4]

Action Step: Tell That Story

Margins aren’t just numbers. They’re narrative.

• “Made in the USA” should be more than a label—make it a message
• Share how your sourcing and pricing reflect sustainability + stewardship
• Build customer loyalty through transparency

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🧡 How to Guard Your Margins When the Sky is Falling

Here are a few low-drama, high-impact margin-saving moves:

✅ 1. Know Your Numbers Weekly

Check profit margins every week, not just quarterly. Use a simple Google Sheet or app (or grab our Financial Clarity Kit).

✅ 2. Bundle Strategically

Create packages or subscriptions that boost average order value while streamlining fulfillment.

✅ 3. Upsell Ethically

Sell add-ons that serve your customer and lift your bottom line. Think: digital downloads, services, or VIP access.

✅ 4. Negotiate Everything

Your vendors aren’t immune to recession stress. Ask for better terms, discounts, or co-marketing swaps.

✅ 5. Educate Your Audience

Use content (like this!) to show customers what goes into creating your offer. People respect brands that are transparent and mission-led.

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✨ Final Word: Margin Is the Message

In a recession, everyone becomes obsessed with revenue again. But here at The Brilliant Margin™, we know better:

• Revenue is a faucet. Margins are the pipes.
• Revenue is noise. Margins are music.
• Revenue is impressive. Margins are important.

Margins don’t make you flashy. They make you free.

So while the economy does its thing, you do yours:

• Watch your costs
• Price with courage
• Serve with integrity
• And never apologize for running a profitable business.

Because purpose-driven entrepreneurs still need paychecks. And profit isn’t a sin. It’s a strategy.

See You in the Margin!

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📅 Bibliography

[1] Miltz, Alan. (2017). Cash Flow Story Workshop. Financial Mechanics. [2] The Brilliant Margin™ Blog. (2025). Markup Madness: Why You’re Still Undercharging Like It’s 2015. [3] Baker, Ron. (2020). Implementing Value Pricing: A Radical Business Model for Professional Firms. Wiley. [4] Housel, Morgan. (2020). The Psychology of Money. Harriman House.

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