Markup Vs. Margin Explained For Beginners - Difference Between Margin and Markup

[@Jason-rt3in]

Other videos of this nature are 5 to 15min long to explain this simple content. Thank you for making it easy and timely. :)

[@steventhomas863]

Great video, but a few clarifications are needed. First, markup is not a percentage...markup rate is a percentage. Also, those should be gross profit in the formulas. Without the word gross, one might imply it's a net profit.

[@maximusEagle]

it would have more informative to actually explain WHY we need to know and what we USE the margin for ?

[@hoomanmardox]

Maybe I should redo this video with some updates...

[@wyattchiordi5132]

im using it to see how much my business will make if i buy raw materials then resell them

[@Rottilover21]

Thankyou. Simplicity as it's best. We not dummies. We busy. This was quick and easy

[@Fatima-rz9vt]

Facts lol

[@PopaDom212]

Markup=Margin/(1-Margin) and Margin=Markup/(1+Markup), for those interested.

[@ahmedal-majrafi9572]

Dear, if I have markup percentage and selling price, how can I calculate the cost?

[@eddycastellon9076]

I have a question, so let say I sell a shoe to a franchisee for a wholesale price of $45 + extra 10% discount and retail cost is $95 and the client needs to sale it at a 55% minimum in their store to make a good profit...what is my margin as a company who sold him the shoe?

[@ChrisAnthonyPinnock]

Just finding your videos in 2020 and they're still so relevant! Timeless content and exceptional teaching! Also, there's just something about hand drawn examples that gets the content across better than special effects 😁

[@Fai9981]

You make it so simple, thanks!

[@jimmiranda7181]

I finally got it! Thank you

[@mohammadsiddiqui4932]

Me too

[@Renatus_Eruditus]

Thanks for the great and succinct content! Question: when you calculate your costs for these formulas, are they just COGS or do they include OP Ex as well?

[@francescotagliavento8081]

what is the gross profit if the elements of the income statemnt look as follows: secondary income 33,000; COGS 68.000; depreciation 500; sales 100,000? a)32,000 b) 20,000 c)32,500 d)25,000 e) none of above answers is correct Someone could help me? I don't know how to calculate that?

[@Uce28]

Market I would prefer when calculating your product in business and margin will definitely be for sales.

[@junior_nxumalo]

Super easy. Super simple. Love it. Thanks

[@tsvetelinakrasteva8472]

I think this just saved my life!! Many thanks!

[@msemmafw]

Is cost just what you paid per wholesale price ..or does that include shipping and packaging ?

[@SAHVoice]

Which app you use for online teaching ?

[@richardbalogh2433]

Wow. this video is amazing. Thank you so much. I got it straight away under 3 min

[@potuparu]

SIMPLE NICE AND CRISP .. YOU ARE A GOOD TEACHER

[@BigMacCy]

Sir, please can you explain something to me, I have my cost price and would like to add a percentage to the cost to get my retail price. If I assume that my cost is €10 and I add 40% to that my formula I think is €10 / (1-40%) = 25

[@tgk300xx4]

Sotiris Soteriou No. I believe you are wrong. If you cost is £10 and you add and percentage to keep for your self ie. the profit, then that is your markup. So you know what your mark up is (40%) and you know what your cost is (10). So you would do 10 x 1.4 aka 140%. This will then give you your retail price (selling price to customer) which works out to be 14 pounds. So 14 pounds is 10 pounds with a 40% markup. So, let’s say you already New you selling price (14 pounds) and you already New your costs (10 pounds) and you wanted to work out what the markup was your would do profit which is 4 pounds (14 - 10) divided by 10 (which is got cost). So if we do: 14 - 10 = 4 4 / 10 = 0.4 or 40%. There is my answer.

[@Sam-81_98]

Hey mate if you want to do a 40% markup you need to multiply your cost by 1.40 ..so for a 10 Euro cost it is going to be 14 Euro. 14 Euro is your 40%markup on 10 Euro cost. However if you want to do a 40% margin the formula is cost/(1-0.4) so it will be 10/0.6= 16.6666 . Now to check again margin is Profit/sell price. Which is (16.66-10)/16.666 which works out to be 40% So in mark up you Multiply and to calculate margin you divide... hope this helps.

[@coffeemint1864]

thank you sir. Direct to the point without long intro. hehee

[@michelmina8115]

NOTIONS OF MARKUP AND MARGIN AND HOW THEY CALCULATED IS WELL KNOWN, THE PHILOSOPHY WHY WE HAVE TWO STATES OF PROFIT AND WHEN TO UTILISE EACH IS NOT WELL KNOW. YOU CAN CONTACT ME FOR AN EXPALANTION

[@NINAMONOT]

Yes. This is what i want to know. When to use each of these.

[@JJdesignerstudio]

I checked with the MU button on my calculator.. let's say my Cost is 500 and Selling is 600 so according to your formula I'm getting a 20% markup but on the calculator I'm calculating markup on 500 @20% I'm getting 625 pls do explain

[@davidgonzales2558]

625 is a 25% markup from 500

[@emsroks]

Would you include sales tax in your retail price?

[@smanas2009]

Its very easy way to understand...Thanks Hooman

[@marionavarro3086]

If I sell my product for $100 and it cost me $40, is that a good profit?

[@jonielgarcia5446]

Too expensive 😂

[@marionavarro3086]

joniel garcia how much would you sell it for?

[@jonielgarcia5446]

I will sell it Maybe about 50%off But it depends in your taxes.

[@jonielgarcia5446]

Before you make decide in your own make profit.it must be worth it for costumer.

[@marionavarro3086]

joniel garcia cool

[@franzit]

Thanks for explaining this in such a clear way!

[@jmakaza2936]

thanks good n easy to master after you explain

[@TshegoMalala]

what's the explanation of MARK UP and FIXED PROFIT MARGIN?

[@n.gogsadze3078]

very clear. Thank you!

[@nishantverma3537]

This is way things should be taught. Making it simple and confined to the topic.

[@Amit2390]

Hi sir, I am small clothe shop owner So my Expenses, I pay my rent shop 2500 rupees, Light bill 100 rupees, I handle own no worker appoint Travel expenses 500 rupees, And I discount 20% So my shop profit structure formula ?

[@Sam-81_98]

What is your selling price?

[@Amit2390]

@@Sam-81_98 Rs. 500 indian currency

[@sirpfa]

Nice and simple thanks but i only recently came to hear about markup, so can you please say what is the use of markup in reality

[@lucidrifter]

It is a pricing strategy. Sometimes your mark up is too high and people dont wana buy your stuff (ex. They find it cheaper in another store or they find the price too high considering other factors in industry). Margin is what you actually earned after paying all cost of production. Margin is percentage of your gross profit.

[@sirpfa]

Kat Pusa thank you for your response. But in practice there must be where one must use margin and one must use markup, other wise they will end up in loss. No?

[@francisjunioropoku6864]

I was here on 7/04/2022. Thank you Sir

[@AriocXY]

So, this confuse me sometimes GROSS PROFIT GROSS MARGIN NET PROFIT NET MARGIN MARKUP

[@jammin345]

In other words…$4000 in labor is 60% gm or 154% markup for 2 techs @ 8hrs and materials.

[@masoodahmedshaikh3640]

informative. appreciate it.

[@ih2022]

Thank you great video

[@anjasyudismita]

Better explanation than my lecturer 😅

[@jeanethabundabiasca1138]

Where did he get the $4 ?

[@yungliberty3549]

I was confused too, so the equation is profit/cost=markup, so the $4 is the profit (the amount you sell it for minus the amount it cost to make; 9-5)

[@Cyraphotoshop]

Oh so simple why this took me a year to understand😒

[@beautifulslim]

Awesome. Thanks.

[@Jdhk820]

Thank you !

[@fiona3555]

very clear and easy>_>

[@xhyong6277]

I wanted to understand the differences but this vid simply stated the formulas...didnt help me

[@lucidrifter]

the visual actually tells you the difference between the two. Margin tells you the percentage of what you actually earned (after paying the cost of production). Markup is basically the percentage/how much you are sellling the item than it actually cost you when buying it.

[@Nicola4J]

Thank you

[@anmarieanandygrant-stuart5558]

thx very helpful

[@chuanyuan3943]

Mark-up=20% Revenue=120% Cost=100% Profit=20% Margin=20% Revenue=100% Cost=80% Profit=20% (personal reminder in case I have to watch this video a FORTH time)

[@chuanyuan3943]

It happens

[@billgibson3763]

This does not explain anything except how to do the formula. It doesn't explain why mark up and why margin is used and what is the purpose

[@farazahmed9775]

thanks

[@rinreborn7364]

i finally got it but i keep forgetting damn

[@luqmankhai4095]

i enjoy this fkin video :* thanks a lot

[@Amit2390]

Pls hindi

[@solidgt5429]

So? Explain the implications and the purpose of having these two! What's the point of this video? Add some salt in it, come on man!

[@janetfondacci3070]

Thank you!