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When a product arrives at the store, a price tag is attached which is pre-determined. This is the initial markup price above the cost. Initial markup = Original price - Cost / Original price Maintained Markup= Actual Retail Price - Cost / Actual Retail Price The maintained markup is hence the actual selling price minus the cost. In this article:. The maintained markup is always lower than the initial markup as a result of which the profits tend to be lower. Hence the initial markup should be fixed in such a way that there is a reasonable amount of profit even at the maintained markup price. What are the advantages of maintained markup?.

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