Markup is not your take-home result

If a plan costs $8 wholesale and sells for $12, the $4 difference is gross spread, not net profit.

Merchant team reviewing store operations together

Calculate the right percentages

Markup uses wholesale cost as its denominator: $4 divided by $8 is 50%. Gross margin uses retail price: $4 divided by $12 is about 33.3%.

Subtract the sale costs

Deduct processor percentage and fixed charges, then allocate any acquisition, support and refund costs. What remains is modeled contribution, before overhead and taxes.

Review the real plan

Wholesale prices and customer rules can change. Recheck the price in your store admin and rerun the calculation before promoting a package.

Your next step

Make the store your own.

Create a free merchant account, then prepare payments and wholesale funding before your first sale.

Create your free store