Markup vs. margin: Definition, Formula & Why It Matters
Also called: Markup, Margin vs markup
Markup is profit as a percentage of cost; margin is profit as a percentage of the sale price. They describe the same dollar profit from different angles, and confusing them leads to underpricing. A 50% markup is only a 33% margin.
Markup vs. margin formula
Example
Buy at $200, sell at $300: markup is 50% ($100 ÷ $200), but margin is 33% ($100 ÷ $300).
Why it matters for Reverb sellers
Pricing off markup while thinking in margin is a classic way to leave money on the table. Knowing the difference, and that fees come out of the margin side, keeps your pricing intentional.
How Verbstack helps
Verbstack shows margin consistently across your shop so you are always comparing the same number.
Try it yourself with the Reverb Profit Margin Calculator.
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