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Are retail prices marked up to cover commissions?

April 26, 2017commissions cover marked prices retail

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Are retail prices marked up to cover commissions?

1 Answer

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No. The retail price is many times less than what you would find in a physical store. The reason is that the merchant has less overhead expense. The merchant views these commissions as advertising costs similar to newspaper ads, billboards, TV, etc. It’s the cost of doing business.