Michael Grabczan-Grabowski May 26, 2020:

@all I've honestly never heard of "operating mark-up" before, but I have heard of operating profit (zysk operacyjny).

Are you sure they aren't referring to this latter concept instead?

The definition of operating profit (according to the almighty Google) is as follows:

"op·er·at·ing prof·it
noun
a profit from business operations (gross profit less operating expenses) before deduction of interest and taxes."

I think this must be what they are referring to. In my own business activities, I would also refer to mark-up as "profit."

The link provided by mike23 – https://www.investopedia.com/ask/answers/102714/whats-differ... – says there's a difference between how you calculate the profit margin and the markup. This is true, but ultimately it refers to the same thing, i.e. the extra money you make when you sell something.

If it costs you 50 cents to make a cookie and you sell it for $1, then your mark-up/profit margin is 50 cents:

"profit margin is sales minus the cost of goods sold" — $1 - 50c = 50c
"markup is the amount by which the cost is increased on a product to arrive at the selling price" — 50c

Kamila Ołtarzewska May 26, 2020:

Strzelałam, jak Trump byle ktoś miał jakąkolwiek odpowiedź. Skoro więc macie o tym pojęcie, Panowie, oddalam się.

mike23 May 26, 2020:

Geo, podaj swoją odpowiedź. Ja tylko podałem wyjaśnienie różnicy.

geopiet May 26, 2020:

@ Kamila Michał (mike23) był pierwszy ....

jego prawo wpisać odpowiedź

Kamila Ołtarzewska May 26, 2020:

Właśnie tego nie wiedziałam, GEOPIECIE Strzelałam, co mi się skojarzyło. To proszę odpowiedzieć za Trumpa. ;)

geopiet May 26, 2020:

Markup Percentage = Percentage of money added to direct costs to cover overhead and profit.

Margin Percentage = Difference between direct costs and sales price divided by the sales price.

Job Bid Example                        Percent of Sales
Direct Job Cost        $1,000        77 percent
Markup at 30%        $ 300        23 percent (Margin)
Job Sales Price         $1,300        100 percent

Markup Percent = Markup/Cost = $300/$1,000 = 30 percent

Margin Percent = Markup/Sales = $300/$1,300 = 23 percent

https://www.constructionbusinessowner.com/strategy/business-...

geopiet May 26, 2020:

różnice między marżą a narzutem https://www.corazlepszyportalbiznesowy.pl/art/marza-a-narzut

mike23 May 26, 2020:

margin and markup The difference between margin and markup is that
margin is sales minus the cost of goods sold, while
markup is the the amount by which the cost of a product is increased in order to derive the selling price.
https://www.accountingtools.com/articles/what-is-the-differe...

https://www.investopedia.com/ask/answers/102714/whats-differ...