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Percent & Markup

A lot of businessmen do not understand the difference between markup and percentage.

If you mark something up 25% from $1.00, it would cost $1.25. But if you discount the $1.25 by 25%, it would be less than $1.00 so you would lose money from the cost of the product.

A markup of 25% would make the item $1.33 instead of $1.25; if you discount $1.33 by 25%, you would be back at $1.00. You should buy a small calculator with markup on it. Some are now available.

When the distributor tells you to use 19 points, he is telling you to use markup. Check this out as it could mean the difference between profit and loss.

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