margin is a function of markup and vice versa they're not the same they are a function of each other

so margin is a function of markup and markup is a function of margin but they are not the same

they're not interchangeable welcome back to midweek, Modern Craftsman.

Today, we are going to dive into a very exciting topic.

Well, if I was in school, it probably wouldn't be that exciting.

But being that we are dealing with money and your business and your well-being, it is a very exciting and engaging topic. We are going to

dive into the nuts and bolts of a topic that every contractor, including myself, thinks they

understand, but often we get wrong. And that's going to be the difference between markup and

margin. And these are the foundation of pricing and

profitability. So we're going to talk about what the difference is between the two, why it matters,

and how mixing them up can cost you big time. So I'll break all this down with simple formulas,

real world examples, and some insights to help you simplify these business principles. So if you are not in front of a

computer, grab a not pad. This is not just about math. It's about understanding understanding your numbers understanding your money uh and if you

want to which i would recommend i would hop on to the website moderate craftsman dot co and go to the

blog section and you'll be able to see all the formulas i I have this condensed and distilled very simply,

which will make way more sense than listening to this via podcast. But I obviously wanted to

record a podcast to supplement this blog post. So I'll walk you through this. You probably should

head on to the blog post on the website, Minercrasman.co.

Check that out.

Listen to this.

Go back to that so that you understand it.

But the goal here for me today is just not everyone prices things the same way.

...