Toolbox
Shop math
What you keep.
Markup is on cost. Margin is on price. Fifty percent markup is not fifty percent margin. That mix-up is how a busy shop goes broke.
- Markup
- 50.0%
- Margin
- 33.3%
- Dollars kept
- $100.00
on cost
on price — what you keep
If you wanted a 50.0% margin — the number most owners think they quoted — the price is $400.00, not $300.00.
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