Apr 1, 2019
Markup vs Margin - Why Your Local Small Business Might Be Missing Your Margin Goal
EPISODE 246 of The Local Small Business Coach Podcast
In today’s episode: Markup vs Margin - Why Your Local Small Business Might Be Missing Your Margin Goal
When making pricing decisions for your products or services, do you tend to assign a dollar amount to the costs to determine how much you plan to mark them up or do you have a certain percentage that you use?
A big mistake that some business owners make is they price purely off a dollar markup they want. However, the important thing is knowing your margin % and how much you make on each product or service. After all, your profit and loss statement is based off percent of sales, so should your profit.
Let’s take a deeper dive into how you might be confusing markup and margin and costing yourself profits!
Calculation Found in the Episode:
Markup %: Profit divided by Costs
Margin %: Profit divided by Sales
QUOTE OF THE WEEK: “I like businesses with great margin” – Warren Buffet
The Local Small Business Coach Podcast is for Local Small Business Owners who are tired of living job to job and want to get to $100,000 in personal income. Each episode we discuss how to increase your profits, boost your sales, improve your processes and develop stronger teams.
WHO THIS PODCAST IS FOR:
local small business owners, mobile businesses, brick and mortar businesses, handymen, landscapers, pool cleaners, cleaning services, QSRs, restaurant owners, mechanics, plumbers, real estate agents, dog groomers, franchisees, tradesmen, medical, dentist, insurance, & those looking to increase profits, boost sales, improve processes and develop stronger teams