{"id":1918,"date":"2017-03-24T17:32:54","date_gmt":"2017-03-24T17:32:54","guid":{"rendered":"http:\/\/165.227.70.253\/blog\/?p=1918"},"modified":"2017-09-27T14:25:09","modified_gmt":"2017-09-27T14:25:09","slug":"markup-vs-margin-two-sides-to-the-same-coin","status":"publish","type":"post","link":"https:\/\/bevologyinc.com\/blog\/2017\/03\/24\/markup-vs-margin-two-sides-to-the-same-coin\/","title":{"rendered":"Markup vs. Margin: Two Sides to the Same Coin"},"content":{"rendered":"

In our work with both export and domestic wine and spirit brands, we commonly find clients are confused by the difference between \u201cMarkup\u201d vs. \u201cMargin.\u201d<\/p>\n

Understanding the difference is absolutely crucial to managing business in the U.S., and this is particularly true in the case of the U.S. Three Tier System where a mistake will be compounded at each level.<\/p>\n

<\/div>\n

Markup<\/u><\/strong> is defined as the difference between the gross profit and cost.\u00a0This can be expressed as an absolute number, or as a percentage by dividing the gross profit by the COGS (Cost of Goods Sold)<\/p>\n

Markup is most useful for examining how much actual profit is made on each sale. <\/em><\/p>\n

Margin<\/u><\/strong> is defined as sales minus the cost of goods sold. To express it in percentage terms, divide gross profit by revenue and multiply by 100.<\/p>\n

Margin is most useful for helping ensure that a sale generates a profit.<\/em><\/p>\n

Here’s a handy chart to use as a reference<\/p>\n

\"\"<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Understanding the difference between the two related terms “Margin” and “Markup” is critical to business success.<\/p>\n","protected":false},"author":1,"featured_media":1919,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[307,308,304,306,305,143,179,309],"class_list":["post-1918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-gross-margin","tag-gross-profit","tag-margin","tag-margin-vs-markup","tag-markup","tag-spirits-2","tag-wine","tag-wine-economics","et-has-post-format-content","et_post_format-et-post-format-standard"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/bevologyinc.com\/blog\/wp-content\/uploads\/2017\/03\/coin.jpg","jetpack_shortlink":"https:\/\/wp.me\/p7k1BV-uW","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts\/1918"}],"collection":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/comments?post=1918"}],"version-history":[{"count":4,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts\/1918\/revisions"}],"predecessor-version":[{"id":2055,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/posts\/1918\/revisions\/2055"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/media\/1919"}],"wp:attachment":[{"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/media?parent=1918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/categories?post=1918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bevologyinc.com\/blog\/wp-json\/wp\/v2\/tags?post=1918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}