Mark Up Factors
Y Sec 11-3
2024
Mark Up Factors Used To
Obtain A Specific Gross Margin.
To Obtain
Multiply Cost
To Obtain
Multiply Cost
A Gross
By The
A Gross
By The
Margin Of:
Following
Margin Of:
Following
25%
1.333
42%
1.724
26%
1.351
43%
1.754
27%
1.370
44%
1.786
28%
1.389
45%
1.818
29%
1.408
46%
1.852
30%
1.429
47%
1.887
31%
1.449
48%
1.923
32%
1.471
49%
1.961
33%
1.493
50%
2.000
34%
1.515
55%
2.222
35%
1.538
60%
2.500
36%
1.563
65%
2.857
37%
1.587
70%
3.333
38%
1.613
75%
4.000
39%
1.639
80%
5.000
40%
1.667
85%
6.667
41%
1.695
90%
10.000
95%
20.000
To Use This Table:
Find your desired gross margin percentage in the left column. Multiply your cost by the factor
in the right column to calculate a selling price.
Mark Ups
2024
Y Sec 11-4
Mark Up Formulas
1. Cost x Mark Up Factor = Retail Selling Price.
2. Retail Selling Price - Cost = Gross Margin in Dollars.
3. (1-Cost)/Retail Selling Price = Gross Margin as a %.
What Percentage of Mark Up To Use.
Although the printer may mark up a cost by 50%, this does not mean 50% gross margin is achieved.
Rather, a mark up of 50% will result in only a 33.3% gross margin. The effects of this can be seen in the
table above and in the companion markup table on the previous page.
The actual percentage of mark up a printer will use depends upon several factors. The printer must
consider the significant risk factor involved even in jobs which are completely purchased outside of the
shop (brokered). This risk includes two main parts: the risk of the customer not paying for the job and the
risk of having to reprint the job. Usually higher redo risks are associated with less familiar brokered items.
A low risk may be associated with business cards which the printer handles frequently but a higher risk
may be associated with a multi-part carbonless continuous form which the printer orders infrequently. Also
to be considered is the amount of money involved. A small mark up on a large dollar volume may be wise
in some circumstances but not in others due to customer and redo risks.
Assuming normal risks and no unusual services to the customer are required, a minimum mark
up of of 1.667 (40% Gross Margin) is recommended on smaller jobs (less than $500) and 1.493
(33%) on larger dollar jobs.