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imagine having a store thatamp;#39;s busy all day long people are pouring in merchandise is flying off the shelf what could possibly go wrong well you could go broke how can this happen by not figuring your margins correctly weamp;#39;re calculating your gross profit percentages on this episode of retail tips your gross profit percentage is more than a simple markup a markup is just the difference between the wholesale cost and the retail price for instance if you buy a candy for a dollar and sell it for $150 your markup is 50 Cents or 50% that sounds good right but gross profit takes into account the bigger business picture itamp;#39;s the percentage of every dollar you earn that can be used to cover your expenses so that same $150 candy is only giving you a gross profit of 33% and thatamp;#39;s really not enough every merchandise category in your store has a gross profit Benchmark and The Benchmark for candy can go as high as 45% prepared foods can bring up to 52% Fountain drinks