Markups and Margins

by Pam Stellema

Solving the Mystery of Markups and Margins

Module Introduction

If the terms ‘markup’ and ‘margin’ leave you scratching your head and feeling flustered, then this is the perfect module for you.

Even though the two words are often heard interchangeably, they have completely different meanings and anyone who is in the business of retailing must get their head around the difference.

Over the years, I’ve heard suppliers tell salon owners, “Your profit margin is 100% on our range of skincare” when in fact, they meant that the markup was 100% which means that the profit margin was actually only 50%.  Confusion around the meaning of these two terms can have a seriously negative impact on your profits, so let’s clear things up once and for all...


This module explains, in simple terms, the difference between a markup and margin and why it's so important for you to understand the difference. It also includes an easy-to-understand Markup & Margin Chart for you to reference when pricing or discounting your products and services.

This module includes a PDF document outlining:

  • Margin vs Markup.
  • What's the difference and why does it matter?
  • How to calculate markup %.
  • How to calculate margin %.
  • Many actual examples to help you easily understand markup and margin percentages.

Information Pages: 11

Included Resources in editable Word format are:

  1. Markup and Margin Chart
  2. Markup/Margin Worksheet

Chart and Worksheet: 2

Price: $15.00

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