Marking up merchandise

[Nichols]

At 05:47 PM 11/14/2005 -0400, you wrote:
>I think we have to determine, if the mark-up, is based on the selling 
>price, or the product price.
>50% of the selling price, is the same as 100%, of the buying price.
>Or am I wrong?
>John M. Ross

Markup and profit margin are different. A framastat that costs one dollar 
can sell for two dollars due to a 50% profit margin or 100% markup. In 
other words, a selling price based on a percentage of the cost, added to 
the cost, is markup. A selling price with a gross profit margin of 50 
points has a cost of about half of the selling price. Ironically, sales 
people often call the profit margin "the mark", as in "50 mark". Many still 
use profit wheels, like slide rules, and most financial calculators have pm 
built in. Added to this can be what's called "pack", which for larger items 
will include shipping, prep, delivery, four in-home tunings, first two 
years regulation, etc. Added to the cost, to keep the mark happy.

Clear as mud, no?

Guy





               "Not everything that counts can be counted,
                and not everything that can be counted counts."
                                                           Albert Einstein