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From: Greegor on 25 May 2010 01:43
JKK > That is gross profit, not markup.

krw > Huh? Gross profit is markup. Price - cost.

G > Are you mixing real numbers with percentages?

G > W 100
G > R 120
G > GP 20
G > MU 20 % ( GP/W )
G > Gross Profit Margin 16 % ( GP/R )

krw > That's all just pushing the same two numbers around.

G > Business insiders tend to focus on margin.
G > Consumers often focus on the markup.

krw > Distinction without a difference; same numbers.

G > You think 16% == 20% ?

krw > Don't be stupid. ...or do you share DimBulb's neuron?

G > Nope.

krw > Evidently.

G > Why did you try to pretend that
G > margin and markup are the same thing?

krw > You still don't get it. They *ARE* the
krw > same numbers, just stirred up. They
krw > mean *exactly* the same thing.

G > Markup is the percentage OF WHOLESALE that is GP.
G > Margin is the percentage OF RETAIL that is GP.
G > They are two different ratios.

krw > Of the *SAME* NUMBERS. Sheesh.

G > This would be as if you looked at P= I x E and
G >
G > E
G > -------
G > I x R
G >
G > And then announced that Watts == Amps.
G >
G > You could say they are just reworks
G > of the same numbers, right? LOL

krw > The independent variables are the *SAME*.
krw > Your representation of them is all
krw > that is different.

G > Please confirm that you think Amps and Watts
G > are the same thing, for the same reasons.

krw > Know two, you get eggroll.  ...except in
krw > this case there are only two possible
krw > variables.

G > Are you impaired?

krw > No, you're just beyond stupid.

krw > I think we have a new DimBulb, DimBulb.

G > By your reasoning, Amps and Watts are
G > the same thing. After all:

krw > The independent variables are the *SAME*.
krw > Your representation of them is all
krw > that is different.

G > LOL

krw > Good thing that you're laughing.  Everyone
krw > else is laughing at you too, Junior.

Oh! That stings!

Please stop hurting my feelings mister
usenet poster!

I offended your sensibilities by pointing out
that profit margin and markup are not the
same thing?

And as a BONUS you have asserted that
Amps and Watts are the same thing...

I'm not saying it isn't easy to convert, but
getting terminology right IS important
in some areas. For markup v margin or
Amps v Watts, getting terminology right
is too important to be dismissed.

The fact that conversions are easy is
beside the point.

In both Engineering and business math,
incorrrectly affixed terminology is a big deal.

In those areas especially, the Confucious
saying fits better than elsewhere.



http://bluejacket.com/sea-service_quotes.html

The beginning of wisdom is calling things by their right names.
Confucius



http://www.google.com/#hl=en&q=markup+v+gross+profit


http://www.mrhvac.com/download/free/MarginMarkup.htm

Markup Versus Gross Profit Margin

We're glad you took an interest in this topic. This topic explains the
difference in gross profit margin (or profit margin) and price
markup.

There is a big difference between markup and gross profit. In fact,
this is one of the most common errors contractors make and it can cost
you big.

Markup and margin, what's the difference?
Short Answer

Markup is a percentage of the cost.
Margin is the same dollar amount expressed as a percentage of the
selling price.

Example
Item costs $1.00 Items sells for $1.50.
Markup is .50 or 50 percent of the cost.
Margin is .50 or 33 a percent of the selling price.

Long Answer
Markup Defined
Markup is the difference between invoice cost and selling price. It
may be expressed either as a percentage of the selling price or the
cost price and is supposed to cover all the costs of doing business
plus a profit. Whether markup is based on the selling price or the
cost price, the base is always equal to 100 percent. Markup is the
additional amount added to a sales proposal (bid) or price and which
contain overhead, profit, excess costs, etc.

Margin Defined
The difference between net sales and the cost of goods sold. It is
also referred to as gross profit. Gross Profit/Total Sales. The
percentage of every dollar earned that can be used to pay general and
administrative expenses.

Margin Versus Markup Formula

Applying a simple formula will determine how much the margin will be
based on a percentage that the contractor expects to make. The
contractor will set a margin that ensures that they will be
competitive in the local market. It may or may not reflect the actual
value of an item. In your example, we are looking to make an 60%
margin assuming that our item costs $10. To figure out our sales price
we use the following formula, expressing the margin as a decimal
(i.e., 60% = .60):

Retail Price = (Cost of item)/(1 – desired margin)

From: krw on 25 May 2010 18:47
On Mon, 24 May 2010 22:43:07 -0700 (PDT), Greegor <greegor47(a)gmail.com> wrote:

>JKK > That is gross profit, not markup.
>
>krw > Huh? Gross profit is markup. Price - cost.
>
>G > Are you mixing real numbers with percentages?
>
>G > W 100
>G > R 120
>G > GP 20
>G > MU 20 % ( GP/W )
>G > Gross Profit Margin 16 % ( GP/R )
>
>krw > That's all just pushing the same two numbers around.
>
>G > Business insiders tend to focus on margin.
>G > Consumers often focus on the markup.
>
>krw > Distinction without a difference; same numbers.
>
>G > You think 16% == 20% ?
>
>krw > Don't be stupid. ...or do you share DimBulb's neuron?
>
>G > Nope.
>
>krw > Evidently.
>
>G > Why did you try to pretend that
>G > margin and markup are the same thing?
>
>krw > You still don't get it. They *ARE* the
>krw > same numbers, just stirred up. They
>krw > mean *exactly* the same thing.
>
>G > Markup is the percentage OF WHOLESALE that is GP.
>G > Margin is the percentage OF RETAIL that is GP.
>G > They are two different ratios.
>
>krw > Of the *SAME* NUMBERS. Sheesh.
>
>G > This would be as if you looked at P= I x E and
>G >
>G > E
>G > -------
>G > I x R
>G >
>G > And then announced that Watts == Amps.
>G >
>G > You could say they are just reworks
>G > of the same numbers, right? LOL
>
>krw > The independent variables are the *SAME*.
>krw > Your representation of them is all
>krw > that is different.
>
>G > Please confirm that you think Amps and Watts
>G > are the same thing, for the same reasons.
>
>krw > Know two, you get eggroll. �...except in
>krw > this case there are only two possible
>krw > variables.
>
>G > Are you impaired?
>
>krw > No, you're just beyond stupid.
>
>krw > I think we have a new DimBulb, DimBulb.
>
>G > By your reasoning, Amps and Watts are
>G > the same thing. After all:
>
>krw > The independent variables are the *SAME*.
>krw > Your representation of them is all
>krw > that is different.
>
>G > LOL
>
>krw > Good thing that you're laughing. �Everyone
>krw > else is laughing at you too, Junior.
>
>Oh! That stings!
>
>Please stop hurting my feelings mister
>usenet poster!

Please stop with the non-standard posting. It shows you for the idiot you
are.

>I offended your sensibilities by pointing out
>that profit margin and markup are not the
>same thing?

They are *exactly* the same thing, expressed differently.

>And as a BONUS you have asserted that
>Amps and Watts are the same thing...

Different issue completely. They are representations of physical entities.
"Margin" and "markup" are not.

>I'm not saying it isn't easy to convert, but
>getting terminology right IS important
>in some areas. For markup v margin or
>Amps v Watts, getting terminology right
>is too important to be dismissed.

No, you're just saying that you're stupid.

>The fact that conversions are easy is
>beside the point.

The fact that they are different representations of the same thing is not.

>In both Engineering and business math,
>incorrrectly affixed terminology is a big deal.

You're totally clueless.

<too bored talking to an idiot to read further>
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