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In the field of buying and merchandising, the concepts of cost mark-up and retail mark-up are central to pricing decisions, profit calculations, and merchandising strategies. Both represent methods of adding a margin to the base figure of cost or price, but the distinction lies in the base on which the mark-up is calculated. Understanding these differences is essential for effective retail operations, as it affects both the retailer’s profitability and the way prices are communicated to consumers. Cost mark-up refers to the amount added to the cost price of a product to determine its selling price. In this method, the retailer begins with the actual cost of _____ __________ _________ __________ __________ _____ _________ __________ _______ ___ _______.
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