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miss Carrie Watson and I'm one of the retail coaches at CRS and today I am talking about initial markup or I am you and I challenge my retailers to track I am you and just go on this journey with me while I kind of review it so I am you if you're unaware is the full price of the product that you have minus the cost divided by the full price of the product I call them I am you the in the door margin compared to mmm you or maintained marked up which is out out the door margin which I'll discuss in a second or in my next video actually and I am you is a great way for us to measure the full potential of the margin that we can make out of a product so let's say that we get a product for forty dollars it cost and it has an MSRP or a full price of $80 that gives us after we do the math 80 minus 40 equals 40 divided by 80 and that gives us 50% so we get to keep 50% potentially we get to keep 50% of that $80 which is 40 bucks and that's great and dandy and from the top line our IMU is 50% well what happens if we start challenging the status quo what happens if we decide to start pushing our IMU up and by doing that it gives us a little bit more leeway and flexibility and wiggle room inside of having to do markdowns and discounts so let's say that we have an initiative within the store that we're gonna find products that have a higher IMU so in this instance let's say that we find a similar product for $40 but we're able to sell it and it might even be the same product we're able to actually sell it at $90 and so we've got $50 of margin divided by 90 and all of a sudden we get fifty five point five five five ffff five or fifty five point six and we found a 5% increase in this product of initial markup and sure in this case a switch from $40 of margin to fifty dollars of margin it doesn't sound like that much money but I always try to think of what this would look like if I take it to the big picture and let's say that you have an 850 thousand dollar store which that's good job for having that kind of story um and let's say that you find an extra five percent 5.5 5.5 percent inside of your initial markup well once you do the math that's a swing of 42,000 dollars extra that you get to keep out of those hard-earned sales of 850 thousand so ask yourself is 42,000 dollars worth the effort to try and increase my I am you a few percentage points I think so so challenge yourself today...