Shop Management
Markup is not gross margin
Kace BurnetteSeptember 3, 20265 min read
A 50% markup does not mean a 50% gross margin. They are different math problems, and confusing them will quietly distort parts pricing, advisor training, and the profit story on the P&L.
Markup = (selling price − cost) ÷ cost
Gross margin = (selling price − cost) ÷ selling price
If a part costs $100 and sells for $150, the markup is 50% but the gross margin is only 33.3%. Same sale, different lens.
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