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Why Your Profit Margin Is NOT 100%

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Joyce Dinalli

Published on Premiered Sep 17, 2020

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Hey guys! In today's video, I told you a little more about pricing and, mainly, why selling a product at twice the cost price does not guarantee you a profit margin of 100%, but rather 50%. I explained to you the difference between Markup and Profit Margin. Well, the main difference is in the calculation of each one. The value of the Markup is defined based on the costs, with the profit margin that you want to add to the price of a given product being added to the value of the costs. It is calculated from the profit divided by the cost, the result of the division multiplied by 100. This value is your Markup. The Profit Margin, on the other hand, does not start from the cost, but from the selling price itself. To find the value of your Profit Margin, simply divide the profit by the revenue. The result of this division multiplied by 100 is your Profit Margin (in percentage). There is no 100% profit margin, unless you sell a product that has no cost at all. Did you like it? LIKE, COMMENT AND SHARE! Come be my student and take your store to the next level: https://jornadalojadesucesso.com.br/ Subscribe to the channel: https://bit.ly/2RFcj6n My Instagram: / joycedinalli Store Instagram: / mabellelook / mabellesjdr Website link: http://www.mabellelook.com.br/ #pricing #profit #clothingstore Joyce Dinalli Business Entrepreneurship Store Clothing store Commerce Sales Tips Online sales Profit Margin Markup Pricing Mistakes when pricing products Profit margin calculation Markup calculation Wrong pricing Right pricing How to price your products Revenue Revenue Costs Profit

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