RE: Re: Rubin's markup WAS crohn's disease

[Guest guest]

Quoting Deb & Ian <deb@...>:

> 40% is actually a very modest markup, at least it is in NZ. We had a bike

> shop for a number of years, our std markup was 50%, and believe me we

> were

> NOT raking in the wedge!! Many other industries had much higher markups,

> though with nutritionals it can be a bit lower than 50% sometimes.

Markup is different from profit margin. Profit margin is the ratio of profit

to revenue. So if in a given year, you have $600,000 of expenses and

$1,000,000 of revenue, your profit is $400,000 and your profit margin is

40%.

--

Berg

bberg@...

[Guest guest]

I stand corrected.

-----Original Message-----

From: Berg [mailto:bberg@...]

Quoting Deb & Ian <deb@...>:

> 40% is actually a very modest markup, at least it is in NZ. We had a

bike

> shop for a number of years, our std markup was 50%, and believe me we

> were

> NOT raking in the wedge!! Many other industries had much higher markups,

> though with nutritionals it can be a bit lower than 50% sometimes.

Markup is different from profit margin. Profit margin is the ratio of

profit

to revenue. So if in a given year, you have $600,000 of expenses and

$1,000,000 of revenue, your profit is $400,000 and your profit margin is

40%.

--

Berg

bberg@...