The Correct Way To Figure Markup Percentage: Find Your Most Profitable Selling Price When All You Know Is Your Cost And You Don't Have A Percent Calculator

I have called upon my twelve years of training and experience in inventory purchasing, managing and control to create this book on how to figure markup percentage, plus a few profitable inventory pricing tips. This book is a quick and simple, easy to understand, road map on the correct way to manage and price your inventory like a top business professional.

Two Different Ways

This book will show you two different ways to quickly and correctly figure the selling price and markup percentages for products you purchase for re-sale when all you know is your cost.

It Also Explains How To Figure Markup%

It also explains how to figure what your markup percentage is when you know both your cost and your selling price.

The Difference Between MarkUP And MarkON

Just to be clear, I will be talking about markUP percentages in this book, and not markON percentages. A lot of people confuse the two.

MarkON is when you add (mark on) money to your cost to arrive at a selling price. The markON percentage can be larger than 100%. MarkON is based on the item cost.

What is MarkUP then?
MarkUP is the difference between the cost of an item and its selling price. The resulting answer is called the gross profit. Markup can be expressed as either a dollar amount or as a percentage.

MarkUP's are based on the selling price, not the cost. MarkUP percentages can never be larger than 100%. The only way to even get a markUP percentage as high as 100% is get the merchandise at zero cost.

Why Is Computing Markup On The Selling Price The Correct Way?

When looking at the financials or profit and loss statements (P&L) of a business, the sales are always listed as 100%. This is standard accounting practice. From the sales then, all other COGS (cost of goods sold) expenses and operating expenses are subtracted.

The reason markups are computed on selling prices then, is so inventory management (ordering, pricing, selling) agrees with the financial statements and vice versa.

DANGER: Be Careful

The world is full of people that think they know how to figure markups and percentages. Be careful who you trust, or the consequences could hurt you.

Once you have mastered the information in this book, you will be armed with enough information to figure out for yourself who to trust.

If you can handle fifth grade arithmetic, you can handle this. I’ll give you two markup percent formulas that you can easily memorize in two or three minutes. I’ll also give you one or two Factors that you can memorize in a couple of minutes.

Armed with this information, you can determine the selling price or markup percent of any item as quickly as you can enter figures into a calculator. It’s so simple you won’t believe how easy it is.

I’ll also show you how to check and double check your answers so there will never be any doubt in your mind about the accuracy of your computations. You will be a Markup Percentage Ninja after you finish this book.

Bonus

As a bonus, I’ve also included some tips and strategies you can use that could help you increase your sales and profits in other ways. Things like how to use price points in your pricing strategy, inventory averaging suggestions, examples and tips, and price adjustment strategies when they are necessary.

Even applying just one little tip from this book could add up to thousands of dollars of extra profits for you over the next few months and years.

Every business is different, but sound business basics are universal. When you master the basics, you can apply them to any business and any situation.