17d • #ADDAZERO Resources
Mark Up Vs Margin
The mix-up that's quietly costing you
They're not the same thing, and confusing them is one of the most common pricing mistakes I see.
Margin = (Price − Cost) ÷ Price
Markup = (Price − Cost) ÷ Cost
Example: you sell something for £1,000 that costs £600 to deliver.
→ Margin = 40%
→ Markup = 67%
Use the wrong one to price your next job and you could think you're banking 30% profit when you're actually keeping less than 20%.
Quick check: do you actually know your margin (not markup) on your top service right now?
Reply with your number, and I'll tell you if it's healthy for your industry.
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Mark Up Vs Margin
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