Keystone Markup

Posted in Marketing and Strategy Terms, Total Reads: 1132

Definition: Keystone Markup

Keystone markup is when the selling price of product is twice the cost price of the product i.e. the SP=2*CP

The different types of pricing strategies are

• Mark up pricing

• Value based pricing

• Target return pricing

• Going rate pricing

Mark up is the difference between cost of producing and selling a product and the market price of the product. Desired profit margin is the amount of profit you would like your business to have above the production costs and the type of profit margin as 100 percent of cost price is Keystone markup pricing.

Example: a piece of cloth to be manufactured and sold costing Rs. 10 per metre and the cloth being sold at Rs. 20 per metre.

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