What is Retail Margin?
Retail margin is the part of the selling price a shop keeps after paying for the goods, usually shown as a percentage of the selling price.
Updated
Meaning
English
Retail margin is the part of the selling price a shop keeps after paying for the goods, usually shown as a percentage of the selling price.
Roman Urdu
Retail margin woh hissa hai jo dukaan Sale price me se maal ki Cost nikaal kar rakhti hai, aam taur par percentage me.
Also called shop margin, profit margin.
Example
A shop buys a shirt for 1,200 rupees and sells it for 1,600. The margin is 400 rupees, which is 25 percent of the selling price.
The formula
Margin percentage = (selling price minus cost) divided by selling price. Markup uses cost as the base instead, so the same shirt has a 33 percent markup but a 25 percent margin. Use one and stay with it. Margin is before expenses such as rent, salaries and electricity; what is left after them is net profit. See gross margin and markup.
In Nafaa
Nafaa shows price, cost and margin on each product card and profit by product in reports. Try the profit margin calculator.
Related terms
- Gross Margin
Gross margin is gross profit shown as a percentage of the selling price: (selling price minus cost) divided by selling price.
- Markup
Markup is the amount added to the cost price to get the selling price, usually expressed as a percentage of cost.