Keystone pricing is the practice of setting the retail price at exactly double the wholesale cost — a 100% markup. It has been a standard retail pricing strategy for decades because of its simplicity and because it typically provides sufficient margin to cover operating expenses and profit.

No, these are very different. A 100% markup doubles the cost (buy for $30, sell for $60), yielding a 50% margin. A 100% margin would mean the product is free and all revenue is profit, which is impossible in practice. This distinction is one of the most common pricing misconceptions.

Use higher markups for products with high perceived value, strong brand differentiation, or low price transparency. Specialty items, luxury goods, fashion, and convenience products often warrant markups of 150-300% because customers make purchase decisions based on factors beyond pure price comparison.