Understanding the concept of markups and margins is very important, and this article will briefly explain 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:
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- all configuration options are based on defining the markup
Customer Care:
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- in order to see how much profit a certain 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)
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