Markup-on-Selling-Price Pricing Method

Many resellers, and in particular retailers, discuss their markup not in terms of Markup-on-Cost but as a reflection of price. That is, the markup is viewed as a percentage of the selling price and not as a percentage of cost as it is with the Markup-on-Cost method. For example, using the same information as was used in the Markup-on-Cost, the Markup-on-Selling-Price is reflected in this formula:

The calculation for setting initial price using Markup-on-Selling-Price is:

Citation

Markup-on-Selling-Price Pricing Method   (2022).   From Setting Price: Part 1 Tutorial. KnowThis.com.   Retrieved   August 19, 2022  from   https://www.knowthis.com/setting-price-part-1/markup-on-selling-price-pricing-method/