Customer conversion rate = No. of customers walked in the store / No. of customer who made a purchase
Margin is the percentage of profit based on sales price while mark-up is the percentage gain based on cost. A 25% mark-up results in a 20% margin. For example, an item costs $80. You mark it up 25% (80 x 1.25) and you selling price is $100. A profit of $20 is 20% of $100 so you have a 20% margin. Similarly, a 50% mark-up will result in a 33% margin. To calculate the selling price at a given margin, you have the correct formula. You divide the cost by 1 minus the margin percentage. So, if you want a 25% margin, your cost will be 75% of the selling price. So you take cost divided by .75 to arrive at the price. If you want a 30% margin, divide your cost by .7 which is (1 - .3).
NMC = [Market Demand x Market Share x(Revenue per Customer - Variable cost per customer) ] - Marketing Expenses
To gain customers and dealers at the expense of competition requires better margin & more sales promotion tactics and better customer service (spare parts for cars emphasis on daily promotion.)
According to Chron, the average profit margin for furniture retailers is 2 percent. This is up from other retailers who normally have a 0.5 percent profit margin.
EBITDA Margin = EBITDA/Sales
sales-variable coste= contribution margin
contribution margin = sales - variable cost
Formula for calculating average Contribution margin Average contribution margin = total contribution margin / total number of units
Gross Profit/Net Sales = Gross Profit Margin.
(selling price - direct cost)/selling price = direct margin
Net profit margin is calculated as net income divided by sales.
gross margin ratio is calculated as >GROSS PROFIT/NET SALES
Formula for contribution margin ratio = Sales – Variable cost / Sales
Formula to calculate breakeven point is as follows: Break even point = Fixed cost / contribution margin Contribution margin = Sales - Variable cost
A bank guarantee is given to the customer to perform specific actions of a contract. When there is a cash margin involved, the money will be returned to the customer once the original bank guarantee is completed.
net profit/sales