Average Retail Markup Percentage (ARMP) is the measure of the difference between the retail price of a product and its wholesale cost. In other words, it’s the typical markup retailers use to cover their overhead costs and make a profit. Generally speaking, ARMP helps retailers understand how much they should mark up the prices of products they stock in order to remain competitive in the marketplace. By taking into consideration factors like customer demand, production costs, and pricing policies from competitors, businesses are able to set sector-specific industry standards . Ultimately, ARMP allows retailers to maximize profitability while still providing customers with reasonable prices for quality goods.