ActionFlow can set a default markup and a default margin for price lists.
Note: Set only a default margin OR default markup for price lists.
Margin vs Markup
Margin – how much revenue becomes a profit after cost of goods sold (COGS)
ActionFlow can use a set Margin to calculate revenue.
Markup – how much you add to the cost of a product to make a profit
ActionFlow can use a set Markup to calculate revenue.
ActionFlow Examples
In this example, the cost for a slab is $839.64.
Margin
When a 20% margin is applied to the slab, the revenue becomes $1,049.55.
Markup
With the Markup % tool, ActionFlow first calculates the unit revenue based on the formula set in the Cost Definitions grid for that Price List. Then the markup % is applied to unit revenue (as opposed to cost).
When a 20% markup is applied to the slab, the revenue becomes $1,007.
Conversion Between Margin and Markup
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% |