So was in Walmart today where i work in electronics and I used the Item Inquiry feature on the Telxon, for those of you who are unfamiliar it's basically a hand-held computer.  Well apparently it tells you the mark up on each item as follows..

For those math wizzes out there you can figure out the (US) dollar amounts if still you're interested.

SYSTEM              MARK-UP

Wii                        4.6%

360 Arcade           2.5%

360 Pro                 4.7%

360 Elite               4.8%

PS3                       2.8%

PS2                       6.1%

DS                         4.3%

DSi                        4.4%

PSP Core Pack      3.6%

PSP Value Pack     3.2%

What is MARK-UP?

That would be the gross profit on the item -- the difference between sale price and cost?

Mike from Morgantown

Wow only about 5% markup. Assuming the average console is about 250 dollars that only about 12 dollars profit. I am sure that adds but I would have figured markup would be higher.

Assuming I understand things correctly.

Updated include the true definition of mark-up[Price=Cost*(1+%)] and renamed the old column to margin[Cost=Price(1-%)]

Either way it gives a good idea of the profit per console, which as others have stated is quite low given the sale price.

@mike

not really eg: if you mark-up a $100.00 item by 5% you sell it at $105..00 the mark-up is 5% but the gross profit is only $5.00 of $105.00 which is 4.76%gp approx the larger the mark-up the bigger the differcence 50%mark-up 33%gp

A lot of people are asking what mark up is.

To me Mark up is when a business charges more for a product or service than it is actually worth in order to make a profit.

Okay for all the people who are asking.. in this case the MARK-UP would be how much the retailer Walmart marks the price up from the price they paid for the console.. for example..

Nintendo sells a Wii to Walmart for 4.6% less than $250 then Walmart turns around and marks the price upwards to the $250 that you the consumer has to pay.

It's over seas for me but this is why just because Nintendo now charges retailers more in England than they were, retailers can still sell the console for the same price to the consumer and make a profit albeit at a smaller margin.