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Margin vs markup.

Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is a 33% margin. They are never the same number.

What it means

Margin is profit as a share of the selling price; markup is profit as a share of cost. A 50% markup is a 33% margin. They are never the same number.

What goes wrong

A retailer who asks for "a 50" means margin. A brand who offers "a 50" often means markup. The deal that follows is short by a third for one of them.

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