DIFFERENCE IN MARGIN and MARK UP

marja_nacenkaThe margin is the value added in the price of the goods but the margin is the share of value added in all of the total price of the goods. A detailed description of the bottom >>>

What is different or when the difference between the “margin” and the “mark-up” we will briefly and clearly write their quality, contrast and are necessary.

And so the word “margin” is the English phrase “Margin”, which in most cases translates to “reserve” or “Edge” but in the economy and in particular in the area of ​​trade is slightly different and is an analytical indicator for management decisions. The margin is indicated only as a percentage (%) terms.

But the word “markup” is Russian, and the phrase implies that an extra amount to the cost of which is inserted and can be expressed in monetary or percentage. For example the company Auchan Tajikistan bought cherries are priced at $ 10 and wants to sell for $ 12. As you can see the difference in the purchase and sale of $ 2 or “20%”, which is the margin.

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DIFFERENCE (CONTRAST) margins FROM MARGIN

Mark up is an analytical indicator which is deducted by comparing the “value added” to the “Cost price”. The “mark-up” in the percentage ratio is necessary for managers to understand the level of prices, profitability, return on investment and other parameters of the goods is passed. The margin may be “0” or less, but greater than the higher the better. In practice, usually found in the margin of 20-30% but this is not to say that the selling price or a profitable return on investment. To calculate the profitability of products sold held Bole deep and complex analytical calculations.
Margin – is an amazing indicator is calculated by comparing the “value added” to “sell price”. The margin expressed as a percentage and refers to the share of margins in the structure of sold goods prices. The margin is also widely used in management decisions and to some theories, it is also an alternative indicator similar margins. This type of “Kilometer” and “Nautical Mile”.

Video of the margin and the mark up

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