 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 