A selling price calculator determines the optimal price to charge based on your cost and desired profit margin or markup. Margin (percentage of selling price) and markup (percentage of cost) are related but different.
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Pro Tip
Use margin (not markup) when you know your target profit as a percentage of revenue. Use markup when building price from cost up. Accountants and retailers usually think in margin; manufacturers often think in markup.
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Did You Know?
Retail jewellery has some of the highest markups in retail — often 100–300%. The cost of a diamond ring might be $500 wholesale; the consumer pays $2,000. The reason? Showroom costs, staff, insurance, and the Tiffany premium.
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