In a floral shop, what is the term for the difference between the cost of goods sold and the retail price?

The term that refers to the difference between the cost of goods sold and the retail price is "mark-up." This is a critical concept in retail, including floral shops, as it represents the additional amount added to the cost price of goods to determine their selling price. Mark-up not only accounts for the cost of the products but also includes other factors like overhead costs, desired profit margin, and pricing strategy.

Understanding mark-up is essential for effectively pricing products to ensure profitability while remaining competitive in the market. A well-calculated mark-up can help manage costs and set sustainable pricing that aligns with customer expectations.

The other terms mentioned, while related to financial aspects, serve different purposes. Gross profit refers to the revenue that exceeds the cost of goods sold, which is related but focuses on profit rather than the specific pricing mechanism. Net profit is the amount remaining after all expenses have been deducted from total revenue, encompassing a broader scope than just the cost and selling price. Cost of sales refers to the total costs incurred in producing or purchasing goods sold during a given period, but it does not directly address the difference between the selling price and the cost price.