Markup pricing, also known as cost-plus pricing, is a strategy used by businesses to keep their prices competitive in the market. It involves adding a percentage charge, or “markup,” to the cost of goods and services for additional profit. Companies use this method to calculate their prices based on the costs associated with manufacturing or providing services, plus an additional amount that represents the desired profit margin. By taking these costs into account, markup pricing helps businesses remain profitable while still offering goods and services at competitive prices.