The RIA’s Advocacy and Government Affairs Committee has developed the following to explain the difference between margin and markup and the reasons why understanding that difference is important for any business. RIA members must understand basic principles of cost accounting in order to be in a position to establish prices independently from prices which insurers and other third parties attempt to impose upon their businesses. There are numerous methods of determining a sales price, and determining the markup necessary to achieve a desired margin is one of those methods.

By using the following RIA Margin & Markup Cost Accounting Calculator, the user acknowledges and agrees to the following: The RIA seeks to educate its members on their true total costs that need to be taken into account when determining price. This document is for education purposes only. The RIA does not intend to suggest or imply that its members seek certain margin targets or adopt any particular pricing mechanism. Each restoration company should develop its prices independently.