How to mark up huh?
How much do you want to make?
If you want to make 10% divide the net by 90%.
If you want to make 20%, divide the net by 80%.
If you want to make 30%, divide the net by 70%.
Here's a for example.
Your net (cost) is $.75 per book to bind the books.
Take $.75 and divide by .70 (70%) and you get a 30% profit margin of $1.0714285 rounded up to $1.08.
Some people multiply the net (cost) by 30% thinking it's a 30% PROFIT MARGIN when it's a 30% mark up of the cost. That calculation would look like this. $.75 times 130% = $.975 rounded up to $.98.
For years I used the WRONG calculation (second example above) and couldn't understand why my profits didn't register 30%. Somebody informed me that your profit margin is always based on your sales, your selling price. Profits are not based on your COST. I've been ok since then.
If you are a casual reader of this post and in a business where you want to make 30, 40, 50 percent profit margins, just reading this and applying it will allow you to make more money immediately and forever. It has for me!!!
Hope this helps!!!!