What is the difference between markup and margin?
Markup is the profit as a share of your cost. Margin is the profit as a share of the selling price. A part that costs $100 and sells for $150 has a 50% markup and a 33.3% margin. The same dollars, measured two ways.
How do I turn a margin into a markup?
Divide the margin by 100 minus the margin, then multiply by 100. A 40% margin needs a 66.7% markup: 40 / 60 x 100.
What is a parts markup matrix?
A table of markups by part cost. Cheaper parts carry a higher markup so they are worth the time to order and handle, and expensive parts carry a lower one so the price stays fair. Each row applies from its starting cost up to the next row.
Where do the starting rows come from?
They are Moibay’s default matrix: 100% under $10, 60% from $10.01, 40% from $50.01 and 25% from $200.01. They are only a starting point. Change any row to match your own pricing.