There are two basic ways of marking up goods: one, you use a percentage of the retail selling price; two, you:

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Using a percentage of the cost of the good is the most common and effective way of marking up goods. This ensures that you cover your costs and make a reasonable profit. Using a percentage of the retail selling price may not be accurate as the selling price can fluctuate due to discounts or promotions. Using a competitor's price as a reference may not be ideal either as their costs may differ from yours. Simply guessing the markup without calculating the costs can lead to underpricing or overpricing the goods.

There Are Two Basic Ways of Marking Up Goods: One