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What is Markup?

What is Markup?

Have you ever gone into a jewelry store wanting to purchase an item, but wondered why the price was so high? The answer is markup. Markup is the amount added to the cost price of goods to cover overhead costs and profit. The formulas used to calculate markup are complex and tend to have high rates which usually make up 85% of the item’s final retail price. The markup on an item generally depends on a few factors. The material costs, production costs, advertising costs, storage costs, and expected shelf time all contribute to the final retail markup of the