Difference between revisions of "Margin and Markup"

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If we have BUY and SELL prices, then:
If we have BUY and SELL prices, then:


PROFIT = SELL - BUY
PROFIT = SELL - BUY.


* Margin = PROFIT / SELL x 100
* Margin = PROFIT / SELL x 100.
* Markup = SELL / BUY x 100 - 100
* Markup = SELL / BUY x 100 - 100.


In other words:
In other words:


* Margin = PROFIT part in SELL price or what part profit make up in sell price
* Margin = PROFIT's part in the SELL price, or the part profit makes up in the sell price.
* Markup = increase from BUY to SELL price or how much SELL price increased from BUY price in percents
* Markup = the increase from the BUY price to the SELL price, or how much the SELL price has increased from the BUY price, in percent.
 
<br><br>
= Negative Markup =
 
There is a special case when Markup could become negative.
 
It happens when DID Provider pays to System Owner (admin) for a call to the DID. For incoming calls, when the Provider rate is greater than zero (Provider Rate is > 0), this rate is paid to the system owner by the Provider.
 
It represents a profit for the system owner.
 
 
Example CDR:
 
[[File:Last_calls_stat.png]]
 
DID billing Provider rate: '''100'''.
 
Billsec: '''14'''
 
Price: '''23.333'''
 
In this case Provider price (self cost) is '''-23.333''', because provider pays to admin. This is the reason why Markup become negative.
 
[[File:Calls_per_day_stat.png]]
 
 
<br><br>
 
= See also =
 
* [[Calls per Day]]

Latest revision as of 15:31, 10 May 2019

If we have BUY and SELL prices, then:

PROFIT = SELL - BUY.

  • Margin = PROFIT / SELL x 100.
  • Markup = SELL / BUY x 100 - 100.

In other words:

  • Margin = PROFIT's part in the SELL price, or the part profit makes up in the sell price.
  • Markup = the increase from the BUY price to the SELL price, or how much the SELL price has increased from the BUY price, in percent.



Negative Markup

There is a special case when Markup could become negative.

It happens when DID Provider pays to System Owner (admin) for a call to the DID. For incoming calls, when the Provider rate is greater than zero (Provider Rate is > 0), this rate is paid to the system owner by the Provider.

It represents a profit for the system owner.


Example CDR:

Last calls stat.png

DID billing Provider rate: 100.

Billsec: 14

Price: 23.333

In this case Provider price (self cost) is -23.333, because provider pays to admin. This is the reason why Markup become negative.

Calls per day stat.png




See also