Here is where experience and knowledge really counts. Mark-up over cost must be high enough to cover all overhead, replace deteriorating items such as flowers or unsold food, and still recover costs when you discount slow moving items to sell them. The most successful dress stores use mark-ups of three times cost (buy for $1 sell for $3), flower shops 5 to 10 times and restaurants 3 to 5 times. Each industry has a different standard for what is reasonable.

Just remember the higher the mark-up, the more contribution to good quality and customer satisfaction. If you do not know the customary mark-up, ask several of your potential suppliers and check the prices for various items at competing stores prior to opening.