Strategy-Hurdling to Profitability (1,147 words)

Another point has to do with changing out your merchandise from one printing to another. Rule: You should change 25 percent to 30 percent of your merchandise every printing.

What Price Profitability?

Let's start by defining gross margin vs. markup. I hear these terms used interchangeably much too often. If your cost for a particular item is $50.00 and you plan to sell that item for $100.00, your gross margin is 50 percent and your markup is 100 percent. A 50 percent gross margin represents a 100 percent mark-up. Gross margin and markup are not the same.