Business & Sales

What Is Keystone Pricing?

Keystone pricing is a retail pricing practice in which the selling price is set at double the wholesale cost — a 100% markup, which equals a 50% gross margin. It is a simple rule of thumb that has long been used in retail.

Example

An item that costs 15 wholesale is priced at 30. The 15 difference is a 100% markup on cost and a 50% margin on the selling price.

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.