Time, Utilization & Profitability

Markup vs Margin

Определение

Two different ways to express profit, often confused. Markup is based on cost: pay $100, charge $150 = 50% markup. Margin is based on revenue: same numbers = 33% margin. Same dollars, different percentages.

Почему это важно

Confusing the two leads to mispricing. "50% profit" could mean 50% margin (healthy) or 50% markup (only 33% margin — much thinner).

Related Terms

Gross Margin Delivery Margin Net Margin

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