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Glossary

Financial KPIs

What is markup / IMU?

The difference between cost and retail price; initial markup (IMU) is set before any markdown.

Why it matters: IMU sets the headroom you have to absorb markdowns and still hit margin.

How it's worked out: Watch which base you use. Markup on cost % = (retail − cost) ÷ cost × 100. Initial markup is normally expressed on retail: IMU % = (retail − cost) ÷ retail × 100. Example: cost $40, retail $100 gives 150% markup on cost and 60% IMU on retail.

See it in the platformHow Tightly does markdown optimization

Related terms

gross margin

Sales minus the cost of the goods sold, as a value or a percentage.

a markdown

A permanent cut in selling price to clear stock that isn't moving fast enough.

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