{"ok":true,"canonical_url":"https://dealroom.so/glossary/markup","api_url":"https://dealroom.so/api/public/glossary/markup","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"markup","term":"Markup","group":"Reading the business","definition":"The difference between a product's cost and its selling price, expressed as a percentage of cost. Buyer cares because it directly impacts gross profit and the business's overall profitability.","what_it_means":"When evaluating a business, analyze its markup on key products or services. A consistent and healthy markup indicates strong pricing power and efficient operations. Be wary of businesses with low markups unless they have extremely high sales volume, as it leaves little room for error or increased costs.","url":"https://dealroom.so/glossary/markup","official_sources":[],"related":[{"slug":"profit-and-loss-statement","term":"Profit and Loss Statement","url":"https://dealroom.so/glossary/profit-and-loss-statement"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Markup","url":"https://dealroom.so/glossary/markup","source_type":"DealRoom Data"}}