Margin: The percentage of the selling price that is profit. If you charge £250 with a 20% margin, your profit is £50.
Markup: The percentage added to your cost. A 25% markup on £200 gives you £250 (£200 + £50).
Why margin matters: In recruitment, margin is the industry standard as it clearly shows profitability as a percentage of revenue. It's more accurate for financial planning and ensures consistent profit margins regardless of the contractor rate.
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