Mark-up
Pricing determined by adding gross profit to the direct cost per unit’ usually expressed as a percentage
Mark-up is the amount added to the cost price of a product in order to determine its selling price. It is typically expressed as a percentage of the cost price.
For example, if a product costs $10 to produce and has a mark-up of 50%, it would be sold for $15 ($10 + (50% of $10) = $15).
Mark-up is an important concept in business because it is one way that companies can generate revenue and profitability. However, it is important to find a balance between mark-up and price point in order to ensure that the product is competitive and appealing to the target market.
Factors such as competition, supply and demand, and production costs should all be taken into account when determining an appropriate mark-up. It is also important to regularly review and adjust mark-up as needed in order to remain competitive and profitable.
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