Sales mark-up is the difference between the selling price of a good or service and its cost. The selling price includes the markup, which is the amount that the seller adds to the cost to cover his or her expenses and profit. To calculate sales markup, simply take the selling price and subtract the cost. Sales markups are often used in retail settings, where businesses need to cover their overhead costs and make a profit. Many times, businesses will have different markups for different products, depending on how much they cost to produce or acquire.

Sales Development
What are the different types of Mark-Up?

There are four main types of mark-up which are as follows: sales, cost, retail and trade. Sales mark-up is when the selling price of a product is increased in order to make a profit. Cost mark-up is when the cost of the product is used to calculate the selling price. Retail mark-up is when the selling price is marked up so that it is above the wholesale price. Trade mark-up is when products are sold to retailers at a reduced price so that they can make a profit when they sell the product on.

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