Question: 9 
What is the total allowed mark-up?

The total allowed mark-up is added to the benchmark price of a product to establish the base price for that product in the base zone. The total allowed mark-up is meant to cover all costs in getting the product from its source to the consumer and includes both a wholesale mark-up and retail mark-up. The current wholesale, retail and total allowed mark-ups are set out below.

The wholesale mark-up reflects the cost of the wholesaler to supply product to retailers and includes costs related to:

• marine freight
• operation of marine terminals
• tractor trailer freight.

The retail mark-up reflects the operating cost of the retailer to supply product to the end consumer/customer and includes costs related to:

• capital costs and depreciation
• fuel and vehicle operating costs
• insurance
• office, administrative and other costs
• rent
• repairs and maintenance
• transaction fees
• utilities and communications
• wages and salaries

The total allowed mark-ups do not change weekly. Changes are made to the mark-up through an order of the Board, either on the Board’s own motion or an application by a retailer or wholesalers. When adjusting the wholesale and retail portions of the total allowed mark-up the Board is required to consider whether there have been changes in transportation costs, volume of sales, storage costs, distribution costs and inventory rates since the last adjustment in the mark-up.

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