Valley Mayfair

Wealth Management

Your Markup is not your Margin!

That’s me giving a head shake, which I'm apparently famous for.

Business Advice
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Your Markup is not your Margin!

That’s me giving a head shake, which I’m apparently famous for.

Here’s a story… 

I have a new client, who has a product she wants to sell. She buys it for $60 from the supplier and plans to MARK IT UP by 50%. The retail price is therefore $90.

Her MARGIN is not 50% as she thinks it is.

$90 retail price – $60 costs of goods is $30 profit.

$30/$90 is a 33% profit margin.

This is a common mistake many small business owners make. They think their margins are high because they have mistaken it for their Markup.

This often results in them thinking they should have more cash than they do. Leading to disappointment.

What can you do about it?

There are so many things in business that are never taught when we start out, which is why so many businesses fail. But you can learn and you can get help.

We want to increase your profits and get you working less hours.

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