Markup
How to calculate markup.
Step 1:
Determine your product/service cost. How much did it cost you?
As an example, let's assume the product cost is $1.40.
Step 2:
Determine the percentage markup you wish to apply.
Research your industry to apply a markup that will be competitive.
In this example, we will use 30 percent.
Step 3: Convert the percentage markup to a decimal.
In this case, a 30 percent markup would change to 0.30 (30 divided by 100)
Step 4:
Multiply your original price, $1.40, by the markup amount, 0.30.
The result in this example is $0.42.
Step 5:
add the markup, $0.42, to the original price, $1.40.
The sum in this example is $1.82.
Still need help? Here is a video.
Step 1:
Determine your product/service cost. How much did it cost you?
As an example, let's assume the product cost is $1.40.
Step 2:
Determine the percentage markup you wish to apply.
Research your industry to apply a markup that will be competitive.
In this example, we will use 30 percent.
Step 3: Convert the percentage markup to a decimal.
In this case, a 30 percent markup would change to 0.30 (30 divided by 100)
Step 4:
Multiply your original price, $1.40, by the markup amount, 0.30.
The result in this example is $0.42.
Step 5:
add the markup, $0.42, to the original price, $1.40.
The sum in this example is $1.82.
Still need help? Here is a video.
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