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.
When cost-based pricing is enabled on the marketplace, sale and wholesale prices may be calculated from cost or MSRP using markup rules configured by Marketplace Managers. See Cost-based pricing.
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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