As a GEM-CAR customer, you have access to

**GEM-UNIVERSITY**with all recorded

**GEMINAR**including the one on how calculate selling price based on a cost using a margin. You would also have access to the industry standard margin based of different categories .

### What is the growth margin

The gross margin is the profit calculated on the selling price of an article.

For example, for a repair shop :

- with 1 million in sales,
- with a $100 000 in profit,

We would all say that he as a 10% gross margin!

Margin Formula for a shop : Profit / Sales |

**OR**

Margin Formula for a product: (Selling-Cost) / Selling |

To calculate the selling price based on the cost with a margin in % ;

Selling price = Cost / (1-Margin) |

**Ex:**

If an item as a cost of $100 with a margin of 40%, we should sell it for $166.67

**Selling**= 100 / (1 - 0.4) = $166.67

**Margin**= (166.67-100) / 166.67 = 40%

At the end of the day using a margin vs a markup makes more money in your bank account.

Ex : a part at $100 sold for $100 x 140% = $140

**Margin**= ($140-$100) / $140 = 29%

### To calculate the selling price based on the cost with a markup ;

Selling price = Cost * (1 + markup) |

**Ex:**

If an item as a cost of $100 with a markup of 40%, we should sell it for $140

**Selling**= 100 x (1 + 0.4) = $140