Pricing & profit articles
Practical writing on margin, markup, and the pricing decisions that actually move the needle.
Margin vs Markup: the difference, the math, and the $1,000 mistake
Why a 50% markup isn't a 50% margin, where the confusion comes from, and how to stop your pricing team and finance team from speaking different languages.
How to calculate profit margin (with worked examples)
Step-by-step: gross margin, contribution margin, net margin. When to use each, what they tell you, and the formula every small business owner should have memorized.
Keystone pricing: still the default in retail, and why
Doubling the wholesale cost is the oldest retail formula in the book. We break down where it works, where it breaks, and what to use instead.
What is a good profit margin? Industry benchmarks by sector
Net and gross margin benchmarks for retail, SaaS, restaurants, construction, ecommerce, and more. What's normal in your industry, and what's actually healthy.
How to price a product: a 5-step guide with worked example
Cost-plus, competitive, and value-based pricing — combined into one workflow. With a worked example showing how a $7 price increase can triple a candle maker's profit.
Margin vs profit vs markup: the three are not the same
Three words that get used interchangeably in casual business talk, and shouldn't be. Here's the difference between them and how to stop confusing them.
Gross vs net margin: the difference, and why both matter
A 60% gross margin and a 5% net margin can describe the same business. Here's what goes in each, why both matter, and the trap that catches most ecommerce sellers.
How to calculate food cost percentage (and hit restaurant targets)
Food cost percentage is the foundation of restaurant pricing. Here's the formula, the industry targets by concept, and the gap between theoretical and actual.
Profit margin by industry: 2026 benchmarks (SaaS, retail, restaurants)
Net and gross margin benchmarks for 13 industries. SaaS 20-35%, restaurants 3-9%, grocery 1-3%. Median and top-quartile data.
Restaurant profit margin 2026: benchmarks by type
Restaurant margins by type: fine dining 0-5%, fast casual 4-10%, QSR 5-12%. Food cost benchmarks and 5 improvement levers.
SaaS gross margin benchmark 2026: what good looks like
Best-in-class SaaS hits 80%+ gross margin. What counts as COGS, why AI is compressing margins, and what investors look for.
Break-even analysis: formula, examples & free calculator
How to calculate break-even units and revenue. Target-profit scenarios, margin of safety, and when the formula breaks down.
Contribution margin: formula, examples & how to use it
Contribution margin = price − variable cost. Why it matters more than gross margin for pricing decisions.
Margin to markup conversion: formula, chart & examples
Convert margin to markup with one formula. Full conversion chart from 10% to 80% and why mixing them up costs money.
Profit margin formula — gross, operating, net (with examples)
The three profit margin formulas with a worked $100,000 example. Plus what counts as COGS by industry.
Profit margin in Excel: formulas, templates & pricing sheet
Calculate margin and markup in Excel and Google Sheets. Pricing sheet template, fee/shipping additions, conditional formatting.
Cost-plus pricing: formula, examples & when to use it
How cost-plus pricing works, when it makes sense, and why it leaves money on the table for software and premium brands.
Value-based pricing: strategy, examples & when to use it
Set price by customer value, not seller cost. The 4-step process, common models (per-user, per-outcome, tiered), and when it works.
Psychological pricing: 8 techniques that actually work
Charm pricing, anchoring, tiered pricing, bundling. The 8 techniques backed by research, and the folklore that isn't.
EBITDA margin: formula, industry benchmarks & what it means
EBITDA margin formula and industry benchmarks (SaaS 20-40%, retail 5-10%). How it differs from operating margin.
Operating margin vs profit margin: the difference explained
Operating margin shows underlying business; net profit margin shows what reaches the owner. With formulas and worked example.
How to increase profit margin: 12 tactics that actually work
12 tactics ordered by impact. Revenue moves (pricing, mix, discount discipline) and cost moves (suppliers, shrinkage, labor).
Ecommerce profit margin 2026: benchmarks & how to improve
Ecommerce margins by vertical, platform fees, the CAC trap, and 6 ways to improve net margin.