Who this applies to#
- Use markup when setting or reviewing the increase from cost to selling price
What Markup requires#
- Keep product cost in the denominator and do not label the result as margin
What this does not require#
- Markup does not tell you the share of revenue retained as profit
Common mistakes#
- Treating 50% markup as 50% margin
- Applying a target-margin percentage as a markup
Markup checklist#
- Set cost
- Set price
- Subtract cost
- Divide by cost