Overview

Understanding the concept of markups and margins is very important, and this article briefly explains the difference.

Definition

The markup is the % added on top of the net price.

The margin is the gain/profitability based on the sales price.

For more details, check out the following article. 

Markup & Margins within TripBuilder

Settings & Pricing:

• All configuration options are based on defining the markup.

Customer Care:

• To see how much profit a particular booking generates, the sales margin is shown in Customer Care for each booking.

Mathematical Formulas

Calculating Net and Sales Prices

• sales price = net price * (1 + markup)
• net price = sales price * (1 - margin)

Converting Markup to Margin and Vice Versa

• markup = 1 / (1 - margin)
• margin = 1 - (1 / markup)