KYBN - Markup vs Margin - Why Your Local Small Business Might Be Missing Your Margin Goal
Episode description
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
Click to View the YouTube Training Video Markup vs Margin
QUOTE OF THE WEEK: “I like businesses with great margin” – Warren Buffet
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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.
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