Profit Margin - Confusion

Confusion

Profit margin is frequently confused with markup. It's not uncommon for entrepreneurs to erroneously claim profit margins over 100%. Most likely these entrepreneurs are referring to the markup on a product as a percentage of product cost.

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Famous quotes containing the word confusion:

    “The small force that it takes to launch a boat into the stream should not be confused with the force of the stream that carries it along: but this confusion appears in nearly all biographies.”
    —Friedrich Nietzsche (1844–1900)

    “When heaven and earth were in confusion hurl’d
    For the debated empire of the world,
    Which awed with dreadful expectation lay,
    Soon to be slaves, uncertain who should sway:”
    —Lucretius (Titus Lucretius Carus)