⚖️Margin vs Markup
Profit$5.00
Markup (on cost)50.0%
Margin (on sell)33.3%
🧮Landed cost & practice quote
Landed cost per unit$9.20
Quote price per unit$14.15
Order total to client$1415.38
📉Price breaks, how quantity changes the unit cost
25 units
$12.80
landed / unit
50 units
$10.40
landed / unit
100 units
$9.20
landed / unit
250 units
$8.48
landed / unit
500 units
$8.24
landed / unit
Uses the unit, decoration, setup and freight figures above. Real suppliers also lower the unit price at higher quantities.
Pricing Calculators
Practise with real numbers above, then use the notes below as a reference.
Margin vs Markup
- Markup is profit as a percentage of cost
- Margin is profit as a percentage of the selling price
- A 50% markup is only a 33% margin, they are not the same
| Cost | Sell | Profit | Markup | Margin |
|---|---|---|---|---|
| $10 | $15 | $5 | 50% | 33% |
| $10 | $20 | $10 | 100% | 50% |
| $10 | $25 | $15 | 150% | 60% |
Landed Cost
Landed cost is the full cost of getting a product to the client, not just the unit price:
Unit price+Decoration+Setup+Freight+Duties
Price Breaks
- Suppliers lower the unit price as quantity goes up
- Setup costs are shared across more units at higher quantities
- Always show the client the next price break, ordering a little more can cost a little less per unit
Important
Clients usually agree a target margin with WorkmodeX. Always check which one your client uses before quoting.
Next up🛡️ Compliance Essentials