What’s the difference between markup and discount pricing? A discount is a reduction of the suggested retail price (SRP). A markup is a factor multiplied times unit cost. Both result in the selling price. Markups are generally safer, tend to produce better profit margins, and are not capped by suggested retail pricing. Example: 1.5 (factor) x $100.00 (unit cost) = $150.00 selling price This example, using a 1.5 markup factor, will yield a profit margin of 33%, $50.00 (profit) divided by $150.00. A common mistake is to use a markup factor of 1.3, believing it will yield a 30% profit margin on sales. Do the math and discuss this with your CPA. DieselPro gives users options to use either or both methods, plus several other methods of pricing, maximizing profits while still being competitive. Whether you are a small shop, large shop, or an independent shop just getting started, you may benefit from using Cloud technology. Make DieselPro-IBM Cloud your repair shop software today. Request a free IBM Cloud access account at: http://03626ce.netsolhost.com/ibmreg.html Ken Castleberry DieselPro-IBM Cloud www.dieselpro.biz --------------------------------------------------------------------------- To be removed from this email list, reply with REMOVE as the subject. ---------------------------------------------------------------------------