Skip to main content
+1 (945) 382-5060 info@fuelcfo.com
Fuel Operations
Fuel Inventory Reconciliation Fuel vs. Merchandise Margin Separation POS / Daily Sales Reconciliation Jobber / Supplier Statement Reconciliation Multi-Stream Revenue Tracking
Store & Merchandise
Car Wash Accounting Lottery, ATM & Money Order Accounting Vendor / DSD Reconciliation Prepared Food & Deli Accounting Food Service Franchise Fee Accounting Category-Level Merchandise Margin Gift Card & Voucher Accounting Store Inventory & Shrinkage SNAP/EBT Income & ATM Reconciliation
Tax & Compliance
Fuel Excise & Motor Fuel Tax Multi-Category Sales Tax BSA/AML-Aware Bookkeeping Gas Station Entity Tax Support
Multi-Site & Capital Events
Multi-Location Consolidation Store Acquisition & Disposal Support Bank Loan & Financing Package Support
View all services →
Store

Markup vs margin

Definition

Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price.

An item bought for $1.00 and sold for $1.25 has a 25% markup but only a 20% margin. Mixing the two up leads to pricing that earns less than planned.

Related terms

Accounting

Gross margin

Gross margin is sales minus the direct cost of what you sold, shown as a dollar amount or a percentage of sales.

 Accounting

Cost of goods sold (COGS)

COGS is what you paid for the fuel and merchandise you actually sold in a period.

 Store

Inside sales

Inside sales are everything sold in the store itself, as opposed to fuel sold at the pump.
← PreviousLottery commission Next →Month-end close