Margin and Markup

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:

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.

See also

• Calls per Day