That is approx the same as what I was saying.
"A typical retail markup is in the order of 50%." I said 50% but I was referencing that 50% to the retail price.
In your case there would be the 100% wholesale price plus 140% markup. So the markup is 140/240 = 58% of the retail price.
I've always looked on markup from the retailer's rather than consumer's pov. Your way tends to reduce the impact of what I would term an extravagant retail cut. In your terms I'd suggest 25% as a more reasonable share.
As long as you don't pay income tax, don't eat, don't pay in a pension fund, don't pay your staff, don't pay rates and steal the car you drive, 25% is about OK.
But I'm looking at it from the point of view of a designer and manufacturer who has to do all that and gets only 10% (if that) after buying raw materials! ;-(
I'm old enough to remember the days of resale price maintenance, and the standard markup then on most goods was 50% over trade price.
Standard markup on fresh food at that time was 25% - and in that you had to cover your wastage. Nearly 60% on non-perishables is unacceptable.
I thought goods excepted foodstuffs? Nor would you expect much wastage of food at the retail end in those days - most outlets ran out of stock first.
You missed the 'at that time'. My knowledge is of small shops in the 1960s where a specialist greengrocers would be buying in fresh goods 2 or 3 times a week and be closed from noon Saturday to Monday morning. As everything was sold loose, wastage couldn't be hidden in pre-packs as happens today - and a change in weather could lead to a guaranteed loss.
The message from Joe Smith contains these words:
Mark-up is, as the name implies, added to the cost price. What you mistakenly call mark-up is normally referred to as (gross) profit margin.
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