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Product Pricing; What is Markup?

Updated: May 15



For a new brand owner there are many grocery industry terms to become familiar with, especially when speaking with retailers.


One of those is "Markup"

Essentially markup is retail price minus the cost the retailer paid for the product in a percentage.


Example;

A retailer purchases a product for 5$ and sells it for 8$.

Markup is typically referred to as a percentage:

(8$ - 5$) divided by 5$ = 0.6 x 100 = 60% markup


Check out quick calcualtor tools to help test the impact of different prices and the corresponding markup %'s.


Tip: Remember that Markup % is different than Margin %. These two terms often get confused.


Read more at the Alberta Agriculture Resources on Pricing:


Written By; Venturepark Labs Team

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