Advice and answers from the Startegy Team

You will see these options when you are looking at adding products or services into a category or group, or if you are wanting to look at the overall revenue of your business.  Markup, Margin, or Multiplier are all related.

Markup is the percentage that you are marking up your products or services.  If you are a retail shop and buy lots of jewelry to resell, you may find it easier to mark up the price by 100%.  This means if you purchased jewelry for $5,000 then you will mark up the price 100% to $10,000.

In the same situation that would mean your margins are at 50% because you are selling them for $10,000 and paid $5,000 for the jewelry.  

The multiplier equivalent would be 2.  This is because you multiplied your cost of the jewelry by 2.  If you bought the jewelry for $2,000 and sold it for $10,000 then the multiplier would be 5.  Your margins would be 80%.  Your markup would be 400%.

There is no need to learn all of these.  Just use what is best for you and your business but we included theses 3 options of markup, margin, and multiplier so that you have all the options you need.  

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