margin vs markup

Tag: margin vs markup

Should You Use Margin or Markup Percentage for Pricing?

The biggest struggle in maintaining or improving profitability often comes down to pricing.  Two of the most common methods companies use to price their products are margin and markup.  Unfortunately, many people think they’re pricing their products based upon a desired margin, but they’re really using markup.  There is a major difference between the two methods

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Case Study: Pricing for Profit

Several years ago, I was consulting with a client in the staffing industry that was having a profitability problem: We have happy customers and seem to be doing well, but we just aren’t making more money… Sound familiar? After visiting with the frustrated owner of the business, I visited various departments to understand the people and

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