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Glossary


Difference between margin and markup

04 Feb 2023
Author: Neil Helps

What is the difference between margin and markup?

Margin is the profit on a unit whereas markup is the increase in selling price above the cost of production/acquisition.

FAQ

Can you please explain the difference between margin and markup?

If Bob sells bags of coffee at R10 and it costs him R7 in total to buy stock and pay business expenses, then his mark up is R3/R7 * 100 = 42.86%

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