Definition
Markup is the amount added to the cost price of a product to determine its selling price, typically expressed as a percentage over cost.
Related Services
Pricing strategy, cost analysis, and financial management services assist businesses in setting appropriate markup to ensure profitability.
Problem and Application
Setting the correct markup is crucial for balancing competitive pricing with profitability. A high markup may deter customers, while too low a markup could hurt margins.
Conclusion
Markup is a critical component of pricing strategy, helping businesses balance cost, demand, and profit margins effectively.
