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THE DIFFERENCE BETWEEN MARKUP AND MARGIN

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Sophy Thomas
THE DIFFERENCE BETWEEN MARKUP AND MARGIN

One of the biggest decisions of your business is determining the right price for your product. The pricing has to be competitive and at the same time, high enough to turn a reasonable profit. Achieving the right balance between these two can be really hard. Calculating your markup and margin are highly essential in such cases where the two numbers are used to estimate the sale price and cost of the goods. While these two seem similar, there are some important differences between the two.

Markup is the amount that you charge above the cost of goods. Margin is the difference between the cost of goods and the sales price.

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Sophy Thomas
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