3 Pillar Blog

Friday FAQ – Markup vs. Profit Margin

Categories: Friday FAQ | Posted: January 29, 2016

Q: What is the difference between markup and profit margin?

A: Markup is what a builder adds to the price of a given item, such as an appliance or lumber order, to cover his overhead costs and achieve a reasonable profit margin on the project. The profit margin is what he actually makes on that item after he pays his overhead, such as office space, cell phone bill, vehicles and labor.

3 Pillar Homes is a custom home builder in Columbus, Ohio. For more information about our new homes, please visit one of our model home locations in Jerome Village, located at 10602 Arrowwood Drive, Plain City, Oh 43064 or in Lewis Center, located at 2360 Koester Trace Drive, Lewis Center, Ohio 43035. You can always contact us by phone at 614-286-0659.


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