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Commerce marketingReviewed September 7, 2026

What is Keystone pricing?

Keystone pricing is the retail shortcut of setting selling price at twice product cost, which produces 100% markup and 50% margin before other costs.

Who this applies to#

  • Use keystone only as a starting shortcut when product cost is known

What Keystone pricing requires#

  • Check the resulting margin against discounts, fulfilment, fees, and the costs omitted from product cost
OnVoard

The markup calculator shows the 100% markup and 50% margin produced when price is twice cost

What this does not require#

  • Keystone pricing does not prove that the resulting price is competitive or profitable after every expense

Common mistakes#

  1. Calling keystone a 100% margin
  2. Using the shortcut without checking discount headroom

Keystone pricing checklist#

  • Confirm cost
  • Double cost
  • Check margin
  • Stress-test planned discounts

Commonly confused with#

Official sources#