What is markup?
Markup is what you add to prices in order to make money. It’s expressed as a percentage.
Many businesses set their prices by working out what it costs to provide goods and services, then marking up that amount by a percentage.
Cost of goods or services (COGS) x Markup + COGS = Sale price
(Markup is entered as a decimal. For example, a 35% markup is shown as 0.35.)
Your markup determines how much money you make on each sale. It ends up being your gross profit. A low markup may leave you with too little cash to run the business and turn a profit. Too high of a markup can turn customers off.