Time, Utilization & Profitability
Markup vs Margin
Definition
Two different ways to express profit, often confused. Markup is based on cost: pay $100, charge $150 = 50% markup. Margin is based on revenue: same numbers = 33% margin. Same dollars, different percentages.
Why It Matters
Confusing the two leads to mispricing. "50% profit" could mean 50% margin (healthy) or 50% markup (only 33% margin — much thinner).
Related Terms
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