Markup in the context of [[pricing]] tactics refers to the practice of adding a specific amount or percentage to the cost price of a product to determine its selling price, thereby ensuring a profit margin for the seller. This pricing strategy is commonly used in retail and other industries to cover costs such as production, distribution, and overhead, while also achieving desired profitability. The markup can be calculated as a fixed amount or as a percentage of the cost price. However, relying solely on markup pricing can lead to prices that are lower than what consumers are willing to pay because it may not fully account for the product's perceived value by customers or market demand.