# 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 ðŸ˜”

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%.Â **

(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 %) = Price

Gross 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 Multiplier

Cost 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

Download the PDF Version of the 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.**