Understanding the concept of markups and margins is very important, and this article will briefly explain the difference.
The markup is what is added on top of the net price. The margin is gain / profitability based on the sales price. For more details checkout the following article.
Markup & margins within TripBuilder
Settings & Pricing:
- all configuration options are based on defining the markup
- in order see how much profit a certain booking generates, the sales margin is shown in Customer Care for each booking
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)