Episode 191: Markup vs. Margin: The Importance Of Knowing The Difference
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You’re sitting in a meeting or on a phone call with a buyer and they throw out a percentage. Are they referring to margin? Markup? Which one? And what does that mean for YOUR brand? In this short episode, we break down…
🧮 What margin and markup are
🧮 Why you can’t afford to mix them up
🧮 PLUS, why it’s okay to clarify with a buyer which they’re referring to!
Follow along with my live math example below:
Wholesale price: $5
Retail price: $8.50
Profit: $3.50
➡️ 3.5 / 8.5 = 41% Margin
➡️ 3.5 / 5 = 70% Markup
Find my favorite calculator resources below:
🧮 Margin and Markup Omni Calculator
📨 Be sure to send us a DM on Instagram at @itsalliball or connect with me on LinkedIn and let us know how you’re moving forward with markup and margin!
🔗Join us in the Food Biz Wiz Facebook group as well to join our conversations on CPG topics and podcast episodes.
SPONSORED BY: RETAIL READY® MASTERCLASS!
This episode is sponsored by our Retail Ready® Masterclass for growing YOUR food business! If you listened in and KNOW that you want access to ALL of my buyer insights, plus to be a part of our supportive, knowledgeable community, then Retail Ready® is THE place for you. Check out our Masterclass for my actionable tips to increase your sales now, plus an invite to join us in Retail Ready®. Click here to watch our Masterclass and learn those tips, plus all that we cover with our course, strategic support & community!