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    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%

    on cost

    Margin
    33.3%

    on price — what you keep

    Dollars kept
    $100.00

    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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