Price markups
Markups are the differences in value between product prices and selling prices. Markups can be positive or negative (negative markups are commonly referred to as markdowns). Markup examples:
- Marketplace Managers can mark up Developer prices (the prices that Developers suggest marketplaces charge for products) to set marketplace prices (the prices that customers pay).
- Sales Support Representatives (SSRs) can mark up marketplace prices to set prices that specific customers pay.
- Resellers can mark up wholesale prices (the prices that marketplaces set and resellers pay) to set selling prices that reseller customers pay.
The following tables display positive and negative markup examples. Users enter prices inclusive of markup.
Marketplace markups
| Developer price | Marketplace sale price set by Marketplace Managers | Custom customer price set by SSRs | Gain or loss for marketplace (SSR price and marketplace sale price - Developer price) |
|---|---|---|---|
| $10 | $15 ($5 markup) | $5 | |
| $10 | $15 ($5 markup) | $17 ($2 markup by SSR and $7 net markup) | $7 |
| $10 | $15 ($5 markup) | $14 (-$1 markup by SSR and $4 net markup) | $4 |
| $10 | $15 ($5 markup) | $7 (-$8 markup by SSR and -$3 net markup) | -$3 |
| $10 | $8 (-$2 markup) | -$2 |
Reseller markups
| Developer price | Wholesale price set by Marketplace Managers | Reseller selling price set by resellers | Gain or loss for marketplace (Wholesale price - Developer price) | Gain or loss for resellers (Reseller selling price - Wholesale price) |
|---|---|---|---|---|
| $10 | $13 ($3 markup) | $15 ($2 markup by Reseller) | $3 | $2 |
| $10 | $13 ($3 markup) | $11 (-$2 markup by Reseller) | $3 | -$2 |
| $10 | $8 (-$2 markup) | $10 ($2 markup by Reseller) | -$2 | $2 |
| $10 | $8 (-$2 markup) | $8 ($0 markup by Reseller) | -$2 | $0 |
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