How to Figure the Selling Price for a Retail Store
If you run a retail store, you have to set the price for each item you sell. Some stores have a standard markup rate, while others have different rates for different items. The markup rate determines the amount of money you must add to what you paid for an item, to set the selling price for customers. Figuring the appropriate selling price helps maximize your profits while not losing customers to other stores selling similar items for less.
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1.
Divide the markup percentage by 100 to convert to a decimal. For example, if your retail store marks up prices 45 percent, divide 45 by 100 to get 0.45.
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Multiply the markup rate by the item's cost to find the dollar amount of the markup. In this example, if you want to figure the retail price of an item that costs your retail store $19, multiply $19 by 0.45 to get a markup of $8.55.
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3.
Add the markup to the item's cost to find the selling price. Finishing this example, add $8.55 to $19 to find the selling price equals $27.55.
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Writer Bio
Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."