what is average markup
For other uses, see Markup. Markup is the difference between the cost of a good or service and its selling price. A markup is added onto the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.or other uses, see Markup. Markup is the difference between the cost of a good or service and its selling price. A markup is added onto the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.