Acknowledging the importance of margin and markup pricing, Rachel Singletary, CVPM, shares the basics of when to use each method, how the PIMS systems are involved and meeting the market prices. It is important to remember:
- Markup is a cost-based calculation to determine price
- Margin is a price-based equation that includes a percentage objective against COGS
- Establishing pricing should never be a set-it-and-forget-it exercise
Source: Veterinary Practice News, May 15, 2024. Link.
There is also no one “magic” gross margin to aim for as it varies with each product.”