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Markup is the difference between the selling price and the cost of a good or service. Learn how to calculate markup, profit margin, and markup percentage, and how markup affects aggregate supply and pricing.
Learn about the different types of retail formats, such as food, softline, hardline, specialist, arcade, anchor store, bazaar, boutique, category killer and chain store. See how retail formats influence consumer choice and expectations, and how they vary across regions and products.
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. Learn about the etymology, history and types of retailers, from ancient times to the digital age, and their strategic decisions and mix.
Gross margin is the difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage. Learn how to calculate gross margin, how it differs from gross profit, and how it is used in sales and marketing.
Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Learn how to calculate profit margin, gross profit margin, operating profit margin and net profit margin, and why they are important for business and investors.
Then a markup is set for each unit, based on the profit the company needs to make, its sales objectives and the price it believes customers will pay. For example, if a product's price is $10, and the contribution margin (also known as the profit margin ) is 30 percent, then the price will be set at $10 * 1.30 = $13.
RRP stands for recommended retail price or suggested retail price, which is the price at which a manufacturer recommends that a retailer sell a product. The term is used in different countries and industries, such as the UK, the US, and the automobile sector, and may have different legal implications.
Learn how retailers plan and execute their marketing strategies based on the 6 Ps of retailing: product, place, promotion, price, personnel and presentation. Find out how product assortment, customer service and supporting services, and retail format affect customer experience and loyalty.