Markup
Markup - is the difference between the cost price and the selling price
of merchandise. Simple to define, it is equally simply to compute.
Retail Price $45
Less Cost Price $17
Markup Dollars $28
Markup is frequently expressed as a percentage and is computed by
dividing the cost by the retail and subtracting the answer (percent) from
100%.
17/45 = 38% of the retail cost.
The difference (100% - 38%) is 62% Markup.
Estimating Sales and Markup for your business is the first step to
building a Profit Plan. As you build an assortment of products for your
business, they must have the potential to generate Sales and Markup that
will meet or beat your Profit Plan’s sales estimates.
You will need to maximize your Markup as much as possible on the items
you sell. You will find that you will be dealing with a double edge sword.
You can’t survive with to low of Markup dollars on your products. And
you will have to maintain competitive prices in order to stay in business.
Markup is good only if it is in your "till."
The best way to receive maximum sales and profit is to buy quality
products at the best prices possible, give your products the Markup needed
to achieve a fair profit and in turn give your customers value for each
dollar they spend.
|
Internet Marketing Tools | Marketing Software
© 1998 -2006
WGSjostrom Co., All Rights Reserved. This page can not be altered in any
way. Webmasters and publishers are invited to cut and paste this
document (as long as you include this resource box at the end of this
document) to your web site or electronic newsletter.
Complying with all applicable copyright laws is the responsibility of
the user of this document. Please do not make any substantial editorial
changes without prior to approval to your publication. Links within the
article and resource box can not be altered, and must be 'clickable' on
a web page, Ezine or in an eBook.
http://www.biznetcenter.com |
|
