//Initial Markup or IMU
Initial Markup or IMU 2017-08-10T17:37:07+00:00

Initial Markup or IMUThe initial markup is a term used to describe the markup percentage you are using when pricing your products. In other words a simplified formula for cost plus pricing. For example if you buy a product with 3€ and sell it with 9€ your IMU is 200%. It is often used by retailers to ease the pricing. It has its merits, but in cases where you are selling with different cost structure, the IMU is not that useful. A retail space in Helsinki and London are differently priced thus using the same IMU factor does not yield the best profitability.