It’s not uncommon for people to use the terms “markup” and “margin” inter­changeably, as if they mean the same thing. And, as dollar amounts, they do; but as percentages, they’re very different—and that affects your business.

Imagine that you have estimated a project and have totaled all the costs including labor, materials, and subcontractors. That’s everything inside the blue box in the diagram, below. Upon your leaving the project, everything inside that blue box stays on the job.

or Register to read the full article.