Kaizen Time

Markup vs. Profit Margin: Know the Difference, Boost Profits

Written by The Kaizen Team | | May 02, 2024
 

Ever feel like pricing is more art than science? You're not alone. In this episode of Kaizen Time, we break down one of the most common financial mix-ups: markup vs. profit margin. These two terms might seem interchangeable, but they serve very different purposes.

Markup helps you set a baseline price—so you’re not selling yourself short. Profit margin, on the other hand, reveals how much of your revenue actually turns into profit. Understanding both is crucial for pricing smarter, protecting your bottom line, and scaling your business.

By the end of this episode, you'll have a crystal-clear grasp of how to use markup and margin together to drive stronger profits and smarter decisions. Let’s turn your pricing strategy into a competitive advantage.

Is there a question you want answered? Send us an email at bsb@kaizencpas.com