Margin vs. markup
Margin is profit divided by selling price. Markup is profit divided by cost. Retailers should know both before changing prices.
Calculate gross margin, gross profit, and pricing impact before you update prices in your store.
Margin is profit divided by selling price. Markup is profit divided by cost. Retailers should know both before changing prices.
Compare calculated margin against real sales reports, discounts, returns, and inventory costs.
Small price or cost changes can materially affect gross profit when a product sells hundreds of times per month.