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The difference is easy to reconcile, and managers should be able to switch back and forth between the two." Definition of "Unit" "A fundamental variation in the way people talk about margins lies in the difference between percentage margins and unit margins on sales. Margins represent a key factor in pricing, return on marketing spending, earnings forecasts, and analyses of customer profitability." In a survey of nearly 200 senior marketing managers, 78 percent responded that they found the "margin %" metric very useful while 65 percent found "unit margin" very useful. Managers need to know margins for almost all marketing decisions. This difference is typically expressed either as a percentage of selling price or on a per-unit basis. " Margin (on sales) is the difference between selling price and cost. If the latter, it can be reported on a per-unit basis or on a per-period basis for a business.

Gross margin can be expressed as a percentage or in total financial terms. Managers differ widely, however, in the assumptions they use in calculating margins and in the ways they analyze and communicate these important figures." Percentage margins and unit margins All managers should, and generally do, know their approximate business margins. "Margin on sales represents a key factor behind many of the most fundamental business considerations, including budgets and forecasts. The purpose of margins is "to determine the value of incremental sales, and to guide pricing and promotion decision." 1.2.4 Gross margin tools to measure retail performance.1.2.3 Converting between gross margin and markup (gross profit).1.2.2.1 Gross margin (as a percentage of revenue).1.1 Percentage margins and unit margins.