Marking up merchandise

[Ross White]

Traditional practice in the retail industry is to show wholesale, 
distribution, storage, other marginal costs and markup (or profit-margin) as 
a percentage of retail.  If you try to track these amounts in any other way, 
you'll go nuts, especially if the I R S ever asks you to explain.
J R W


>From: Nichols <nicho@zianet.com>
>Reply-To: Pianotech <pianotech@ptg.org>
>To: Pianotech <pianotech@ptg.org>
>Subject: Re: Marking up merchandise
>Date: Mon, 14 Nov 2005 15:22:38 -0700
>
>At 05:47 PM 11/14/2005 -0400, you wrote:
>>I think we have to determine, if the mark-up, is based on the selling 
>>price, or the product price.
>>50% of the selling price, is the same as 100%, of the buying price.
>>Or am I wrong?
>>John M. Ross
>
>Markup and profit margin are different. A framastat that costs one dollar 
>can sell for two dollars due to a 50% profit margin or 100% markup. In 
>other words, a selling price based on a percentage of the cost, added to 
>the cost, is markup. A selling price with a gross profit margin of 50 
>points has a cost of about half of the selling price. Ironically, sales 
>people often call the profit margin "the mark", as in "50 mark". Many still 
>use profit wheels, like slide rules, and most financial calculators have pm 
>built in. Added to this can be what's called "pack", which for larger items 
>will include shipping, prep, delivery, four in-home tunings, first two 
>years regulation, etc. Added to the cost, to keep the mark happy.
>
>Clear as mud, no?
>
>Guy
>
>
>
>
>
>               "Not everything that counts can be counted,
>                and not everything that can be counted counts."
>                                                           Albert Einstein
>
>_______________________________________________
>pianotech list info: https://www.moypiano.com/resources/#archives