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Margin vs Markup
ActionFlow can set a default markup and a default margin for price lists.
Margin – how much revenue becomes a profit after cost of goods sold (COGS)
Markup – how much you add to the cost of a product to make a profit
To convert between the two:
Example:
Markup and Margin Chart:
|
Markup |
Margin |
|
15% |
13% |
|
20% |
16.7% |
|
25% |
20% |
|
30% |
23% |
|
33.3% |
25% |
|
40% |
28.6% |
|
43% |
30% |
|
50% |
33% |
|
75% |
42.9% |
|
100% |
50% |
|
150% |
60% |
|
200% |
66.7% |
|
300% |
75% |