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Markup vs Margin
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What is markup and what is margin?
Markup and margin are both different ways of looking at your profit on a sale. They are similar because they focus on the same amount of money, the difference is between your buying, and selling prices. They generally express that amount as a percentage.
Mark up is the percentage by which you bump up the prices.
Margin, on the other hand, tells you what percentage of a sale is profit.
Your markup percentage is always bigger than the margin percentage, even though they refer to exactly the same amount of money.
Check out more guides and info here:
Xero is beautiful accounting software for small businesses and their advisors. See your cashflow in real-time with online accounting, invoicing, payroll, billing & banking. Just login and see the difference.
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These videos are intended as a general guide only. Please consider what is best for your business. If you require further information specific to your business needs, please speak to your professional advisor/s
Markup and margin are both different ways of looking at your profit on a sale. They are similar because they focus on the same amount of money, the difference is between your buying, and selling prices. They generally express that amount as a percentage.
Mark up is the percentage by which you bump up the prices.
Margin, on the other hand, tells you what percentage of a sale is profit.
Your markup percentage is always bigger than the margin percentage, even though they refer to exactly the same amount of money.
Check out more guides and info here:
Xero is beautiful accounting software for small businesses and their advisors. See your cashflow in real-time with online accounting, invoicing, payroll, billing & banking. Just login and see the difference.
Sign up for a free trial at:
These videos are intended as a general guide only. Please consider what is best for your business. If you require further information specific to your business needs, please speak to your professional advisor/s
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