Markup

usgb/ˈmɑːrkʌp/
noun

The amount added to the cost price of goods to cover overheads and profit.

The store has a 20% markup on all its products.
Visual representation of "markup" - The amount added to the cost price of goods to cover overheads and profit.

Often appears as...

  • price markup
  • product markup

Usage tips

Business

Definition 1 of 3
Visual representation of "markup"
LampPro Tip 1/3

Retail Context

Markup often relates to retail pricing. It includes costs to operate a store like rent, utilities, and employee wages.

Illustration for Retail Context
The boutique's markup helps cover the prime location rent.
LampPro Tip 2/3

Not Always Profit

A markup doesn't always signify profit; it can also mean covering business expenses.

Illustration for Not Always Profit
After considering overheads, our markup isn't pure profit.
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Price Sensitivity

High markups can deter customers if they feel a product isn't worth the extra cost.

Illustration for Price Sensitivity
Shoppers noticed the high markup on designer jeans.
Visual representation of the word "Markup"

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