Definition: A percentage added to the cost to get the retail selling price.
Also Known As: markon, markup
Examples: A widget bought for $5 and sells for $10 has a mark-up of 100%. (Add $5 to the $5 cost to get the price.) A widget bought for $2, which sells for $3, has a mark-up of 50%, (Add $1 to the $2 cost to get the price.)
Retail math is often used in various ways by store owners, managers, retail buyers and other retailing employees. It is used to evaluate inventory purchasing plans, analyze sales figures, add on markup and apply markdown pricing to plan stocks.
Cost of Goods + Markup = Retail PriceRetail Price - Cost of Goods = MarkupRetail Price - Markup = Cost of Goods
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