Talk:Markup (business)

This article gives two different results for markup.

The article starts out clearly stating that the markup is the difference between the two prices. A difference means subtraction, no subsequent division.

Further in the introduction and also in the exemlpary calculations a relative value using division is given to get the markup as a percentage value.

A value can not be defined by two calculations giving two different results. The result has to be the same if we use the same word to describe it. You need two different words for the two different results.

Otherwise you will cause confusion.

Markup should be defined either by the difference between selling price and wholesale price (a difference means simply subtracting - no subsequent calculation) OR by the other calculation where this subtraction is followed by a division to get a relative value (percentage).

If you want to call the difference without subsequent division markup, you might wanna call the other value (with division) relative markup or some similar meaningful description that makes clear that you are talking about a percentage.

If you wanna call the percentage simply markup, you should use a different description for the other more simple value that you get by just subtracting the two prices, e.g. absolute markup, cash markup, markup in (your currency) or avoid the word markup and say difference between the two prices to clarify that you don't mean a percentage.

If you want to use only one description (markup) and you want to use it for the percentage, then you may not simply say it's the difference between the two prices. In that case you really have to clearly state that after this subtraction you'll need to divide to get the markup.

The shortest way to clearly state this would be: The markup is the RELATIVE difference between the cost (wholesale price) of a good or service and its selling price, AS A PERCENTAGE OF THE COST.

This is how the article should start.

2A00:23C5:7746:6200:5494:6425:AC29:954C (talk) 09:26, 24 November 2016 (UTC)
 * Article edited to resolve this.
 * Article edited to resolve this.

Kbk (talk) 19:25, 15 July 2019 (UTC)
 * It still looks wrong to me. As I learned many years ago (though I am not in the retail business) markup is based on the sale price, not cost, by most retailers. That isn't so obvious, as in most cases percentage is based on the starting value, which would be cost, but it might be that MSRP is more constant. In any case, the article in some cases says one thing, and the calculations say another. Gah4 (talk) 23:22, 27 February 2021 (UTC)
 * It still looks wrong to me. As I learned many years ago (though I am not in the retail business) markup is based on the sale price, not cost, by most retailers. That isn't so obvious, as in most cases percentage is based on the starting value, which would be cost, but it might be that MSRP is more constant. In any case, the article in some cases says one thing, and the calculations say another. Gah4 (talk) 23:22, 27 February 2021 (UTC)

This article should maybe also include the history, when were markup and capitalism started and were there ever any experimental societies with zero markups?````