Margin. GP. Markup. Gross Profit. Net Profit. Revenue. Sales.
What the heck do all these things mean and are they even different?
Unfortunately it’s a question not every business owner can answer. In fact, no many business owners can tell the difference between all these, how they relate to each other and how they all lead to one very important outcome: CASH!
We put together a quick episode to (hopefully) give you some more clarity about margin and markup in particular as they have a huge impact on how much money you make on materials and labour. Knowing the difference and how to calculate them will also help you quote jobs correctly so you don’t find yourself working for clients for free… or worse still, paying clients to work for them!
Warrick has also put together a margin/markup calculator you can use to help figure out your pricing and whether you’re on target. You’ll find it in the Tradies Business Toolkit so head on over and grab this handy tool for just $1*