Markup
Category: Pricing
Definition (plain English)
Markup is the percentage or amount added to cost to set a selling price, calculated from cost upward rather than from sales revenue downward.
Why it matters commercially
Markup is useful for quick price setting, but it does not equal margin; mixing the two can approve quotes that miss the real profit target.
Example
A trader added 30% markup to a $10 landed cost and quoted $13, then checked that the resulting margin was only 23.1%, not 30%.
Common mistake
Using a markup percentage as if it were margin, especially when channel rebates, freight, duty, or discounts still need to come out of the sale price.
Use this in CommerceKit
Target Buy Price Calculator
Use tool →Markup vs Margin
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