Markup: what it is

Markup is the factor (or percentage) applied to the cost of a product or service to arrive at the selling price. If the cost is R$ 100.00 and the markup is 100%, the price comes to R$ 200.00. It starts from the cost and moves "forward"; the contribution margin, on the other hand, looks at the price and deducts costs "backward".

What is the practical difference between markup and margin?

Hypothetical example: a supply costs R$ 100.00 and is sold for R$ 200.00. Markup: the price is the cost plus 100% of the cost. Margin: of the R$ 200.00, R$ 100.00 is left, which is 50% of the price. The same numbers, two different readings.

Confusing the two is a common and costly mistake. Someone who wants a 50% margin and applies a 50% markup ends up with a margin of about 33%, and the profit disappears once fees and taxes come in.

What goes into the base cost?

In an HOF clinic, the cost of a procedure involves more than the product:

• supplies and disposables;
• clinic hour, that is, the cost of keeping the office running per hour;
• card terminal fee and installments;
• taxes and commissions;
• time for assessment, follow-up and complications.

If markup is applied only to the product, the final price does not cover the structure. If it ignores follow-up time, the clinic works for free in the aftercare.

How do you use markup without becoming its hostage?

Markup is a starting tool, not a final decision. Price also depends on the clinic's positioning, the professional's experience, the region and competition in perceived value. Copying other people's prices makes no sense, because no one knows the other clinic's cost structure.

Another point: idle capacity influences price. Empty slots have the same fixed cost as full ones, and that goes into the planning calculation.

In Harmy

The app does not calculate markup. In the PDF quote, you enter the value per ml for each area, with discount, validity in days and notes, and you can save the price table in My clinic. Price is the clinic's decision; the app organizes and presents the value.

Also called: markup index, multiplier factor.