Glossary · Costs & pricing

Keystone pricing

Setting the retail price at twice the wholesale cost: a 100% markup, which is a 50% margin.

Why it matters for a product launch

It is a shorthand, not a rule. Work out what each step in the chain needs before you set your wholesale price.

General definition for education only, not legal, tax or customs advice.

Related terms

Markup vs. margin: Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 100% markup is a 50% margin.
COGS: The cost of the products you sold in a period: what you paid to buy or make them, plus costs to get them into inventory, such as inbound freight and duties.

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