Keystone pricing
The classic retail standard: 100% markup (2× cost). A $25 item sells for $50. Simple, predictable, and the minimum viable markup for most product categories.
Product markup calculator
Calculate selling prices from markup, find the markup on existing products, or price multiple products at once with batch mode.
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%
$50.00
Selling price
$25.00
Profit / unit
100.0%
Markup
50.0%
Margin
Industry markup benchmarks
| Industry | Markup Range |
|---|---|
| Fashion & Apparel | 100-350% |
| Beauty & Cosmetics | 100-500% |
| Electronics | 30-50% |
| Home & Garden | 50-100% |
| Health & Wellness | 50-200% |
| Food & Beverage | 50-100% |
| Jewelry & Accessories | 100-300% |
| Pet Products | 50-150% |
| Sports & Outdoors | 50-100% |
| Handmade & Crafts | 200-500% |
Product markup guide
Value-based pricing
Price based on perceived value, not just cost. A $25 moisturizer with premium packaging and branding can sell for $80+ (220% markup). Understanding the consideration phase helps you position products for maximum perceived value.
Competitive pricing
Research competitor prices for similar products. Price within 10-15% of the average, then differentiate on value: better photos, reviews, product descriptions, and the shopping experience. Check your profit margins to ensure your pricing is sustainable.
Psychological pricing
$49 instead of $50, $97 instead of $100. Charm pricing (ending in 9) increases perceived value. For premium products, round numbers ($100, $250) signal quality. Match your brand.
Guide shoppers to your best-value products
A product recommendation quiz can route customers to your highest-markup products while making the experience feel personalized and helpful.
Discover product quizzesProduct markup FAQ
Common questions about product markup and pricing strategies.
Markup is the percentage added to a product's cost to determine the selling price. A 100% markup (keystone) means you double the cost: a $25 product sells for $50. Markup = (Selling Price - Cost) / Cost × 100.
Keystone pricing is a 100% markup, which means doubling the wholesale or cost price. A $25 item sells for $50. It's the traditional retail standard and works well for most products. Some industries (beauty, jewelry) use double or triple keystone (200-300% markup).
Consider: (1) Industry standards, check the benchmark table, (2) Competition and what similar products sell for, (3) Perceived value and whether brand strength allows higher markup, (4) Operating costs since markup must cover overhead plus profit, (5) Volume, as high-volume products can have lower markup. Start with industry keystone and adjust based on your positioning.
Your markup must cover ALL costs beyond COGS: shipping, packaging, platform fees (2-5%), payment processing (2.5-3.5%), marketing, returns, overhead, and your desired profit. A 100% markup on COGS might yield only 10-20% net profit after all expenses. Track your total cost per order to set appropriate markups.
Selling Price = Cost × (1 + Markup/100). For 100% markup on a $25 item: $25 × (1 + 1.00) = $50. For 150% markup: $25 × (1 + 1.50) = $62.50. This formula works for any markup percentage.
Markup = ((Selling Price - Cost) / Cost) × 100. If you buy for $25 and sell for $50: ($50 - $25) / $25 × 100 = 100% markup. If you sell for $75: ($75 - $25) / $25 × 100 = 200% markup.
Not necessarily. Higher markup means more profit per unit but may reduce sales volume. The sweet spot maximizes total profit (units × profit per unit). Premium brands can sustain higher markups; commodity products compete on price. Test different price points and track total revenue and profit, not just per-unit margins.
Both measure profitability differently. Markup is based on cost: ($50 - $25) / $25 = 100% markup. Margin is based on selling price: ($50 - $25) / $50 = 50% margin. The same product always has a higher markup number than margin number. Use our Profit Margin Calculator for margin-focused analysis.
Usually not. Use higher markups on: exclusive/unique items, impulse purchases, products with high perceived value, and low-competition items. Use lower markups on: commodity products, price-sensitive categories, loss leaders (to drive traffic), and products with transparent pricing. A mixed strategy maximizes overall profit.
Private label products can command 200-500% markups because there's no price comparison. Start with competitor retail prices, ensure your cost allows 150%+ markup, factor in branding/packaging costs, and test price points. The key advantage of private label is pricing power: customers can't easily compare.