what are cost markups and markdowns?

Answer 1

markup is how much a store owner has to put the price up from their providers price to makemoney and markdown is a discount

Answer 2

Markups And Markdowns

Answer 3

The cost of the merchandise used in calculating markup consists of the base invoice price for the merchandise plus any transportation charges minus any quantity and cash discounts given by the seller
Retail price, rather than cost, is ordinarily used in calculating percentage markup. The reason for this is that when other operating figures such as wages, advertising, and profits, are expressed as a percentage, all are based on retail price rather than on the cost of the merchandise being sold.
Is the price of this item very important to your target consumers? You need to know your customers' desires for different products and whether price is an important issue in their purchasing decision?
Have you established a price range that people will pay for the product? What is the high and low price that the merchandise will have to fall within for someone to buy?
Have you considered what price strategies would be compatible with your store's total retailing mix that includes merchandise, location, promotion, and services?
Markup is a percentage of the cost.
Margin is the same dollar amount expressed as a percentage of the selling price.
Example
Item costs $1.00 Items sells for $1.50.
Markup is .50 or 50 percent of the cost.
Margin is .50 or 33 a percent of the selling price
MARKDOWN. A markdown is a voluntary reduction in the selling price of an item. There are three types of markdowns: markdowns below cost, markdowns to zero, and retail markdowns.

MARKDOWN BELOW COST. A markdown below cost is a voluntary reduction in the selling price of an item below its original cost value.

MARKDOWN TO COST. A markdown to cost is a type of retail markdown in which the selling price of an item is reduced so that it is equal to its cost price.

MARKDOWN TO ZERO. A markdown to zero is an expenditure of stock through a price change that reduces the value of the item to zero

Answer 4

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RE:
what are cost markups and markdowns?

Answer 5

markups is when a retailer buys a product for a certain price, and then has to raise the price to make a profit. Markdowns are usually when there are backstock or overpriced material and the price is lowered to reduce inventory

Answer 6

markups are how companies make money, it's the price they add to the cost of the item. Markdowns rarely go below cost....unless the store it desprately trying to get rid of the product due to sell by dates, new season, undesirable item, ect.

Answer 7

Cost mark ups and cost mark downs are how a product is selling. If a product is selling extremely well then thats when a manager or maker calls for a cost mark up. If a product is not selling then the manager or maker calls for a cost mark down.

Answer 8

the way to get you to the store to buy there product that the mark high to sell at profet price after they pretent to loweer the price.