Mark up and Mark down

Markup is a term used in marketing to indicate how much the price of a product is above the cost of producing and distributing the product. It can be expressed as a fixed amount or as a percentage. There are numerous variations of each.

• Assume:
  • Retail list price = RM2500
  • Product cost is RM2000

• MARKUP = price - cost
  • RM2500 - RM2000 = RM500

• Assume the actual selling price was RM2200
  • MARKDOWN = List price - selling price
    • RM2500 - RM2200 = RM300
  • INITIAL MARKUP = list price - cost
    • RM2500 - RM2000 = RM500
  • MAINTAINED MARKUP = sale price - cost
    • RM2200 - RM2000 = RM200