Keystone pricing sets a retail selling price at twice the chosen wholesale or product-cost basis.
How it works in retail
At that price, markup on the chosen cost is 100% and the implied gross margin is 50%, before any additional costs not included in that basis.
A retail example
A shop uses a $30 product cost and sets the selling price at $60 under a keystone approach.
What to keep in mind
Keystone is a pricing convention, not a guarantee of profit or an appropriate price for every item. Freight, markdowns, returns and operating costs still matter.
Examples are illustrative. Terminology and measurement conventions can vary by business and market.