Markup
Markup is the margin added over the total cost of a piece to reach its selling price, covering profit and business overheads.
Markup is what turns cost into a selling price. After the metal, the stones and the making are totalled, a jeweller adds a margin on top to cover rent, staff, insurance and profit. Handled as a rule rather than a guess, markup keeps a whole catalogue priced to a consistent policy even as gold rates swing.
Where markup sits in the price
Cost and markup are different jobs. Cost is what the piece took to acquire and make: metal value, stone value, wastage and the workshop's making charge. Markup is the business layer added over that cost so the shop earns a margin and covers its overheads.
Say a pendant costs 20,000 rupees all in. A 15 percent markup adds 3,000 rupees, taking it to 23,000 before tax. Some jewellers express the same idea as a target margin instead, which is the profit as a share of the selling price rather than of cost, so it pays to be clear which basis a number uses.
Rule based markup keeps a catalogue honest
When markup is a rule, not a sticky note, it survives rate changes. Gold can rise 4 percent overnight and every affected piece still carries the same margin policy, because the markup is applied on top of a freshly calculated cost.
It also lets a business segment sensibly. Fast moving plain gold might carry a slim markup because customers compare it closely, while a distinctive design piece can carry more. Setting these as category rules means the policy is visible and repeatable rather than depending on whoever wrote the tag.
- Markup is added over full cost to reach the selling price.
- It covers profit plus overheads like rent, staff and insurance.
- Margin on selling price and markup on cost are different measures.
- Rule based markup stays consistent as gold rates and costs change.
Markup, in short.
Is markup the same as making charge?
No. Making charge is the cost of crafting the piece and is part of cost. Markup is the retail margin added over the total cost, so the two sit in different layers of the price.
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A 25 percent markup is a 20 percent margin, so it helps to state which one a figure refers to.
Can markup differ across product categories?
Yes, and it usually should. Price sensitive plain gold often carries a thinner markup than design led or branded pieces, and setting these as rules keeps the policy consistent across the catalogue.
Related terms
See markup inside a real jewellery system.
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