What pricing strategy is described as applying a target markup percentage consistently across all products?

The pricing strategy referred to here involves consistently applying a target markup percentage across all products, which aligns with the concept of cost plus markup. This approach starts with the cost of the product and adds a predetermined percentage as a markup to determine the selling price.

Cost plus markup is beneficial for maintaining consistent profit margins on merchandise regardless of market fluctuations or demand changes. By adhering to a set markup percentage, businesses can simplify their pricing processes, making it easier to ensure all products contribute to overall profitability. This method is straightforward and allows for clearer financial forecasting.

In contrast, other pricing strategies differ significantly in their approach. Keystoning typically refers to doubling the cost of an item to set the retail price, while dynamic pricing adjusts prices based on current market conditions, demand, or competitor pricing, thus lacking the consistency the question describes. Loss leader pricing intentionally prices one or more products below cost to attract customers in hopes of upselling other items, which does not involve a standard markup across the board.