Short Answer

Marked price is the price written or printed on a product by the seller. It is also called the list price. This is the price before giving any discount to the customer.

For example, if a shirt has a tag showing 500, then 500 is the marked price. The shopkeeper may give a discount on this price, but the marked price remains the original listed price.

Detailed Explanation:

Marked price meaning

Marked price is the price that is fixed and displayed on a product by the seller. It is also known as the list price or printed price. This price is written on the product label, tag, or packaging so that customers can see it easily. It is the starting price before any discount or reduction is applied.

In simple words, marked price is not always the final price paid by the customer. The seller may give a discount on the marked price to attract buyers. After applying the discount, the customer pays a lower amount, which is called the selling price.

Relation with cost price and selling price

Marked price is related to both cost price and selling price. The seller usually keeps the marked price higher than the cost price to ensure profit. From this marked price, discounts may be given, and the final selling price is decided.

For example, if a product has a cost price of 200, the shopkeeper may mark it as 300. Then, if a 10% discount is given, the selling price becomes 270. In this case, 300 is the marked price, and 270 is the selling price.

Purpose of marked price

The main purpose of marked price is to give the seller flexibility in pricing. By setting a higher marked price, the seller can offer discounts and still earn profit. It also helps in attracting customers, as people are often interested in buying products at discounted prices.

Marked price and discount

Discount is always calculated on the marked price. For example, if a product has a marked price of 500 and a discount of 20%, then the discount amount is 100. So, the selling price becomes 400. This shows how marked price is used as the base for discount calculation.

Use of marked price in daily life

Marked price is used in many real-life situations, especially in shopping and business.

Use in shops and markets

In shops and markets, every product has a marked price printed on it. This helps customers know the original price of the product. It also helps them understand the discount offered by the seller.

Use in online shopping

In online shopping, marked price is shown along with the discounted price. For example, a product may have a marked price of 1000 but is sold for 700 after discount. This helps customers see how much they are saving.

Importance in business

Marked price is important for business because it helps in pricing strategy. It allows sellers to adjust prices based on demand, competition, and profit goals. It also helps in managing sales and promotions.

Difference from selling price

Marked price is not the same as selling price. Marked price is the listed price, while selling price is the final price paid by the customer after discount. Understanding this difference is important in calculations.

Common mistakes

A common mistake is thinking that marked price is the amount paid by the customer. In reality, the customer usually pays the selling price after discount, not the marked price.

Conclusion

Marked price is the price displayed on a product before any discount. It is used as a base for calculating discounts and deciding the final selling price. It plays an important role in business and shopping.