mark-up

mark-up The amount by which the cost of a service or product has been increased to arrive at the selling price. It is calculated by expressing the profit as a percentage of the cost of the good or service. For example, if a product cost £8 and is sold for £12, the mark-up would be:

Note that the margin is calculated by expressing the profit as a percentage of the selling price; in this case it would be:

The mark-up is widely used in retailing, both for setting prices and as a ratio for control and decision making. Seegross profit percentage; net profit percentage.

• lock-out
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