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 | * 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 | * 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:
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.
