Margin, COGS, Markup & Profit Confusion - Short 123

<p>In today’s short podcast, Bryan clears up the differences between markup and profit margins in HVAC businesses.</p> <p>The number one mistake that people make in business is confusing markup and gross margin. For example, you can double the price of a $50-part and sell it for $100. That would be a 100% markup. However, your gross margin is NOT 100%; your gross margin is only 50%; you only made a 50% profit on the total sale. </p> <p>In the same case you have above, you have a 50% cost of goods sold (COGS). COGS is the direct cost of the expenses you...