What’s in a markup? Designers dispel some of the mysteries behind the cost-plus model—including how it can be applied to products and services, and why it matters to their firms and the industry at ...

Think of markup as being based on cost, while margin is based on the selling price. Using the wrong metric can skew your analysis, so always double-check which one applies to your specific scenario.

They don't understand that margin is what profit is created from. When I get on a call with someone, I'll ask, "What is your margin right now?" They'll say, "Oh, I mark up my product three times ...