Margin vs Markup – A Must See Video!

August 29th, 2011 | Simcha Weinstein | 1 Comment »

While being a math wizard is not necessarily a criterion for being a good retailer, having a basic understanding of pricing formulas is necessary. Key to the success of any department or store is achieving or exceeding your target margin. If you are not making money on the product you sell, your business is ultimately in trouble. The key to a successful pricing strategy is to understand margin. Unfortunately this understanding can frequently get undermined because too often margin is confused with markup. Margin and markup are very different processes and when margin gets confused with markup, the financial results can be devastating to a retail operation.

This month’s Beneath the Soil Video (below) addresses the differences between Margin and Markup and details how you can accurately price your product every time. It will be 10 minutes of viewing that can really make a difference in the way you move forward with your pricing and profitability. I hope you take the time to watch the video; I hope you enjoy it; and most importantly, I hope it’s helpful. Good luck with your margin.

http://www.youtube.com/watch?v=jdYSGHXS7o4