# What's the difference between Margin, Markup %, and Markup Multiplier ?

Learn what each term means and how it affects pricing within shopVOX

I hear you - I know the different terms in shopVOX can be confusing ๐

But sometimes the biggest offenders are not shopVOX specific ones.

Here's some that might trip you up.

• Gross Margin
• Markup %
• Markup Multiplier

#### Example Scenario

The best way to learn the differences here are with scenarios - so let's use a simple one.

I sell a screen printed t-shirt for \$7 to my customer. That shirt costs me \$2 to buy and print.

#### Gross Margin %

Gross margin % is typically used to calculate how profitable a particular project is (before any taxes).

Here is our formula.

`(Price - Cost) / Price = Gross Margin %`

In the example above, our Gross Margin % would be 71.4%.ย

`(7 - 2) / 7 = .714285714 or 71.4%`

That's a really solid number. The target range here would be 40% and above.

The thing is you won't see a lot of references to Gross Margin inside shopVOX.

When pricing your products - it's more popular to use one of the next two concepts.

#### Markup %

Markup is the amount you add to the cost to determine your selling price.

`Cost + (Cost * Markup %) = PriceGross Margin / Cost = Markup %`

In the example above, our Markup % would be 250%.

`(7-2) / 2 = 250%`

#### Where will I see Markup % in shopVOX?

• Integrated Apparel Catalogs
• Custom Apparel Catalogs

#### Markup Multiplier

Markup multiplier is a simple multiplier used to determine your selling price.

`1 + Markup % = Markup MultiplierCost x Markup Multiplier = Price`

In the example above, our Markup Multiplier would be 3.5.

`1 + 250% = 3.5`

#### Where will I see Markup Multiplier in shopVOX?

• Products
• Materials
• Labor Rates
• Machine Rates

You'll see an X to the right that denotes a multiplier, instead of a percentage.

#### Margin vs Markup Chart

If you're like me - math can be your worst enemy after a long day.

So as a resource I've created this handy dandy chart to use when setting up your pricing within shopVOX.

Print yourself a copy asap.