How to Calculate Markup and Margin on Products & Services
Channel: Be a Badass Business Owner
Date: 2022-01-19

Markup is different than Margin. Markup is the dollar amount or percentage you add to your costs to get a sales price, while Margin represents how much this Markup is as a percentage of Sales. 

Many small business owners markup their products and services thinking that will get them the profit they desire. The problem is, markup is not a great indicator to what a business’s profits will be. In this video, we will take a look at two examples of how to calculate your margin and your markup. 


KEY MOMENTS IN THE VIDEO:

00:00 How to Calculate Markup and Margin on Products & Services
00:39 Markup vs Margin - Definition
01:05 Example of Markup vs Margin on a Service
03:16 Example of Markup vs Margin on a Product
04:36 What is Markup & Margin Trying to Tell You?
05:13 What Does a Markup Amount Need to Cover?
05:50 The Flow of Money Thru Your Business
06:22 Markup $ vs Margin % Compared in an Example
09:15 Markup vs Margin – How They Relate to Each Other
  
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WANT TO DIVE IN DEEPER & LEARN MORE ABOUT YOUR NUMBERS? 
👉 Grab Your Free Know Your Business Numbers Reference Guide: https://babolearning.com/KYBNReferenceGuide
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WANT MORE? HERE ARE SOME OTHER VIDEOS TO HELP… 
👉 Pricing Your Products Correctly – https://youtu.be/AQ_mUb1E9MQ 
👉 Pricing Your Services Correctly - https://youtu.be/doAKxyRa4pM
👉 How to Read a Profit & Loss Statement - https://youtu.be/x6qdKGnWE0w

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PLAYLISTS TO CHECK OUT:
👉 Learn How to Read Your Profit & Loss Income Statement: https://www.youtube.com/playlist?list=PLkSR9dYanvV1YssoiyqLBUlgxYy2hYADj
👉 PLAYLIST: Pricing Your Products & Services https://www.youtube.com/watch?v=X89AFodPA3U&list=PLkSR9dYanvV0yWIzfFldB1sGx7Dfmn3Do3
👉 PLAYLIST: Learning Your Business Numbers Better:  https://www.youtube.com/playlist?list=PLkSR9dYanvV1tPjNcLppOPDDBn6i4Sdzw 

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FREE GUIDES / TOOLS
👉 FREE eGuide: 8 Steps to Earning $100,000 in Income in your small business - http://bit.ly/8Steps100k 
👉 FREE eGuide: How to Read a Profit & Loss Statement - https://bit.ly/ReadPL 
👉 FREE Start Up Guide for Starting a Business - https://bit.ly/BusinessStartUpGuide 
👉 Free Business Health Check: https://localsmallbusinesscoach.com/businesshealthcheck
👉 Free eBook: 10 Questions to Ask in Your Business  https://bit.ly/10QuestionsBiz

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Books I Recommend to All Small Business Owners – 5 Must Reads
👉 Profit First by Mike Michalowicz – https://amzn.to/3nBsCRC
👉 eMyth Revisited by Michael Gurber - https://amzn.to/3bMDTeR
👉 Building a Storybrand by Donald Miller - https://amzn.to/3y5t0fS
👉 The ONE Thing by Gary Keller & Jay Papasan - https://amzn.to/3yciFi7
👉 The 12 Week Year - Brian Moran & Michael Lennington - https://amzn.to/3R54Smi

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COURSES to HELP YOU
👉 Understanding Your Business Numbers - http://KnowYourBusinessNumbersCourse.com 
👉 Start a Local Small Business – http://StartASmallBusinessCourse.com
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TOOLS TO HELP YOU RUN A BETTER BUSINESS

👉 Housecall Pro: https://babolearning.com/housecallpro - Straightforward software for home service pros. Work simpler and grow smarter with Housecall Pro. Easily manage payments, link to Quickbooks, scheduling, dispatching, and more--all from one, convenient platform. Easy to Learn. Want more efficiency in your business?  (not gonna lie – affiliate link)   😊    But I do believe in it’s ability to help your business! 

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MORE:
👉 Check Out the Website: https://babolearning.com
👉 Listen to the Badass Business Owner Podcast
👉 Want to Help Support the Channel? Click the Super Thanks!  
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👉  DISCLAIMER on Affiliate Links: I occasionally will have some affiliate links & I do earn a small commission but at no cost to you. I only recommend companies or items that I believe will save you time, money or help make your business better

👉  DISCLAIMER:  I am not an attorney, CPA, bookkeeper, insurance agent or financial advisor. My videos/podcast are for entertainment & educational purposes only and should not be construed as tax, legal, insurance or financial advice. Please seek out a qualified CPA, attorney, or specialist as needed.  I’m sharing my experiences with my businesses and those I have worked for and/or helped coach. 

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Local Small Business Owners are the Backbone of All of Our Communities! 



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