Tag Archives: profit margin

Margins and Markups

Editor’s note: This is part of my ongoing series on sales math.

Margins and Markups are related, but only as far distant cousins. As I work with sale people, I find many, if not most, do not understand the difference between markups and margins.

Most of my conversations  with sales people and sales managers, revolve around the fact that multiplying by 1.4 does not constitute a 40% margin, only a 40% markup. Two very different numbers in the sales world.

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