I have no words can describe my appreciation for you. I'm 30 years old and I hate to admit that this is the first I watch a math teacher/professor who is REALLY professional. In your short video I learnt what I couldn't learn In couple months because of the unqualified teachers. You have to be proud of yourself. Your words and voice is like a song that can't be forgotten. I wish if I had a teacher like you in my early school, it would've been a lot different. THANK YOU AGAIN ONE MORE TIME. My respect!
This sort of explanatuon would never be possible in todays online world where classes even for MBA is not explained with no writingand just talking.. Good someone has recorded it over video.
Successful people don't become that way overnight, most people you see as a glance wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life...
I have a question for you. From 7:45 - 8:12 you mentioned that if you have 4 identical products that you would charge the same amount for them, even though you may have paid different amounts for each item. Wouldn't that mean that your margin would be different for each product? In this scenario, how would you handle that if you needed a 35% margin to stay in business? Great video by the way! It was very helpful!
i literally was on the verge of tears because i absolutely couldn't get my head around this until i found this video, sir can i just say that you have actually made my day! i have an exam tomorrow and i feel a lot better now, those kids are so lucky to have you as a teacher man
When I was in college, I never understood this but today, I finally understood it in less than 15-minutes... I usually do Based on Cost, now since I am in retail mode, I should be doing it Based on SP... Thank you so much...
Really very understandable presentation. For near about 5 years I was struggling with measurement of Markup and Margin base. Today it is very clear to me . Thanks to the resource person. Very good job.
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Seriously awsome... I am a young business entrepreneur. I am doing business for last 2 years. I really never kniw what is my margin exactly from products.. Now i am very clear and what price i have to fix it to get correct margin.. Thanks a lot. Teachers are always god.. You are a god... Thank you sir. Very very useful video. Sincerely An Indian
I just stumbled upon this video and loooook what I discovered... a concept I always wanted to understand but somehow could not grasp. .. Now I know it for sure.. Thank You
wow! thank you, it's easier to understand everything if u know the logic behind it, I'm always so nervous about forgetting a formula but this takes care of the problem 100%.
Very well explain! Wish my math teacher would of been like you. So active very well explain. My math teacher wouldn't get up of her chair and she seem like she wanted to get over the topic couldn't even ask a question. More teachers like you would be nice.
Great videos to maximize my understanding of the margin and also happy to know why margin is a more neutral and common word when describing the contributions of sales, instead of markup.
Thank you. I have been watching videos and rereading my chapter on this topic for three hours and your video was the only thing that helped me grasp this concept.
i feel the same as the guy s comment unger mine i watched a few videos made no sense you made it so easy to understand muchas gracias amigo awsome your my math teacher now
As a retailer, my cost isn’t what I paid for the item. It is what I paid for the item to get to my store so cost plus freight,plus any other amt (maybe interest if purchased over time) so those need to be added to cost before I can calculate what I need to sell it for.
Good observation; you are correct. The textbook for this course explained this idea, but I did not mention these things in this particular video. Thanks for thinking about things -- that practice will serve you well :->)
Hi ..thank you for this video it is very helpful. I would like to ask you....Can you tell us more examples on the facts that make a COMPANY BASE THEIR DECISION TO SET PRICES, WHETHER IF IT IS ..Mark up based on COST and based on S.PRICE. You mentioned that manufacturers set their product prices on COST because they know the costs of production...and retailers set prices based on PRICE.....ARE THERE OTHER FACTS TO CONSIDER TO TAKE A DECISION TO SET A PRICE ON Cost or Selling Price?
I understand the math behind the cross-multiplication (re using $300 as 65% of the unknown sale price which is 100%). However, I still do not understand the BUSINESS reasoning behind for this approach. To say simply that it is because retailers' world (re taxes etc) is based on sale price still does not make full sense to me ... because the real margin is the $161 (which is some 54%, ie 461 - 300). It seems like mathematical gymnastics to me. Is this one standard way? Is it used as a safe way for retailers to calculate 'margins' to manage the risk of variable cost prices (like when they source 4 identical items at different cost prices)? ... What happens when another supplier offers $325? Do retailers using this method stay with the 461 knowing that it is padded? ... I thought they would have considered the competition's sale price. Happy for someone to explain. This is all new territory for me. Thanks
Skylightatdusk, thank you for your excellent question. You are right on target regarding considering the competition's sale price. If I know that people will not pay more than $461 and I need 35% margin on selling price, then I must find a supplier who will sell me the item for $300 or less. If I can find no such supplier and I cannot lower my overhead, then I will not carry that item (or I will lose money on it).
Thank you for your clear explanation! I'm not sure when it is good to apply the mark up base on cost and when it's good to apply the mark up base on selling price, please give me the clue for that. Thank you for your time.
you add Mark up to cost and get margin from sales price. Desired margin = applied markup/cost . margin= Sales Price Less cost of goods sold. if a product cost 80 and selling price =100, the margin is 25%. But if we add 20% markup on cost 80, then the selling price is $96. to convert markup to margin use this : Markup/Cost , here 20/80 =25%. Another example: say a product sold at 25% margin at $100. Then the cost is 100-25 = 75. Markup is : 25/75 =33.33% Hope this makes sense. And the book is correct where M = Markup, not Margin.
3-2. Suppose you are told that the business process in has a negative margin. Explain what that means. Suppose the margin of some business process is a negative $1 million. If costs are reduced by $1.2 million, will the margin necessarily be positive? Explain why or why not.
Hello teacher! Can you please help me? I was watching your video however at 10:27 you mention $300/65% = $461.54 however I am not getting that and I don't wanna run out of business, please LOL I am looking forward to hearing back from you with the explanation, please.
