Industry Standard Markup Percentage

Industry Standard Markup Percentage (ISMP) is a key metric used by businesses, allowing them to benchmark the profitability of their products according to industry standards. ISMP is calculated by dividing the selling price of a product by its cost Price plus any direct expenses related to it. This ratio allows businesses to compare their pricing against similar products on the market, ensuring that their prices remain competitive and profitable. By better understanding their costs and margins, businesses can establish clear goals for sustainable growth and success.