Profit margin and markup aren't the same thing — what's the difference?

Markup is the percentage you add on top of a product's cost (so if cost is AED 100 and you add 50% markup, the price becomes AED 150). Margin is the percentage of profit relative to the selling price itself, not the cost — same example, that AED 50 profit on a AED 150 selling price gives you a 33% margin, not 50%. The difference is simple arithmetic but causes real pricing confusion when the two get mixed up.

The most common issue is shop and restaurant owners applying a flat markup across every product without checking whether the resulting margin actually covers their operating costs (rent, payroll, tax). At RASEEKH, we help you build a pricing model based on the margin you actually need to cover your costs and hit a real net profit — not a flat percentage inherited without review.