Contractor Markup V. Margin Simply Explained | + FREE CALCULATOR
Video from Contractor Growth Network. Watch on YouTube.
What you'll get
A marketing and sales firm for contractors explains that margin is your profit as a share of the price, while markup is your profit as a share of your cost, and that mixing them up leads to underpriced jobs. Check its worked examples with your own math, since one doesn't add up: a 50% markup on a $10,000 cost gives a $15,000 price, which is only a 33% margin.
Do this week
For your last three jobs, divide the profit by the price to get your margin and by the cost to get your markup, then check which of the two you used when you set each price.