@lebogangmokubela: One thing a lot of inexperienced #entrepreneurs confuse is #markup vs #profit. Your markup is not what you’re going to make in profit. Let’s do the math. If your #product costs R120 & you add a 20% markup, your profit won’t be 20% markup @ 20% = R24 your selling price: R144 (R120 cost + R24 markup) your profit: R24 (16,67%) Although the Rand value is equal, your 20% markup translates to a 16.67% profit margin, not a 20% profit. This is because the markup is calculated as a percentage of the cost price, while the profit margin is calculated as a percentage of the selling price. By understanding the difference between markup and profit, you can make more informed #pricing decisions and ensure your #business is successful in the long run.