Camino Search · Operations

Mark-Up vs Margin

Same Fee, Different Base

A quick reference for you: what mark-up and margin mean, how they compare on the same numbers, and why we price on margin.

The difference

Why We Work on Margin, Not Mark-Up

Margin is the standard method used across the recruitment industry for temporary and interim workers, because it reflects the total cost of sourcing, employing and administering a contractor, rather than simply adding a percentage to the pay rate.

Mark-up

Calculated on the pay rate

A percentage simply added on top of the contractor's pay rate alone.

(Charge − Pay) ÷ Pay
Margin · how we price

Calculated on the charge rate

Reflects the full cost of sourcing, employing and administering the contractor on the client's behalf.

(Charge − Pay) ÷ Charge
Worked example

One Contractor, One Day Rate

The client pays the same amount whichever way you describe it. Only the percentage changes.

Pay rate
£450
Charge rate
£600
Our fee
£150
Charge rate £600100%
Pay £450 · 75%
£150 · 25%
As a mark-up
33.3%
£150 ÷ £450 pay rate
As a margin
25%
£150 ÷ £600 charge rate
The key point: a 25% margin and a 33.3% mark-up are the same deal, just measured against a different base.
Why margin

Consistency You Can Rely On

Margin aligns with how most recruitment and staffing businesses structure their temporary and interim services.

1

Predictable

One clear cost structure, applied consistently across every placement.

2

Transparent

A clearer view of the overall service cost, not just the pay rate.

3

Complete

Every assignment is backed by the same level of admin, systems and support.

Need to run the numbers?

Work out margin, charge rate or pay rate in seconds.

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