# What is marked price ?

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The definition of "marked price" is the original price tag on a store item. Consumers may be offered reductions off the marked price during a sales event. A "mark down" would be a reduction of the original selling price in order to stimulate sales or clear inventory.

**Marked price is the original price without a discount.**

Here is a typical math problem for illustration purposes:

A pen normally costs $20 but now it is on sale for only $12. Calculate the discount in a dollar amount as well as the discount expressed as a percentage of the marked price.

selling price= marked price - discount

therefore discount = market price - selling price

$8 = $20 - $12

discount as % of marked price

discount% = (discount $8/ marked price $20) x 100% = 40%

**Sources:**

A marked price is actually quite simple. Whether you hear it on a commercial, or through a newspaper advertising, or even in store, a marked price is what the original price of a product is. For instance, if you walk into a car dealership and ask how much a specific car is, the salesman will come back with an answer saying "the marked price is $___." Indicating that the marked price, the actual price, is this much but that doesn't necessarily mean you will be paying that full amount.

Another example, say you're in a retail store and the original marked price for a pair of jeans is $50. However, you recently received a coupon allowing you to get 25% off any one item in the store. Now when you go up to buy those jeans, the marked price of $50 is no longer what you'll be paying. Instead, thanks to your coupon you will now be paying:

$50 - .25(50) = new price for jeans = $37.50

So, to put it as straight forward as possible, the marked price is the original price before taking anything else into account (coupon, discount, negotiating, etc).

cost price is the price the shop owner paid for the product.

marked price is the price the people who come into the store pay.

the differennce between marked price and cost price makes the profit :)

hope this helps

A marked price describes the original price of an item without any type of discount or special sale. A example of a marked price would be if you go into the store and look at in the new collection it will automatically have the marked price without any type of adjustment to the price.