Wholesale & B2B
What is keystone pricing?
Keystone pricing is doubling the wholesale cost to set the retail price, giving the retailer a 50% margin. It is the traditional default in several categories and a useful reference point, though actual retail margins vary widely — grocery often runs far below it and specialty or apparel frequently above.
Keystone describes a markup on cost, and retailers talk in margin on the selling price. Doubling cost is a 100% markup and a 50% margin, and confusing the two is how a price gets set a full tier too low.
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