What pricing strategy involves doubling an item's cost to determine its retail price?

The pricing strategy that involves doubling an item's cost to determine its retail price is known as keystoning. This strategy is straightforward and commonly used in retail, where a retailer takes the wholesale cost of an item and simply marks it up by 100%, or doubles it, to set the retail price.

Keystoning allows retailers to quickly calculate prices while ensuring they cover costs and achieve a desired profit margin. It is particularly useful for items with predictable demand or when the retailer wants to simplify the pricing process for customers. It offers a clear and easy way to establish pricing without requiring complex calculations or market analysis.

Other strategies, although relevant in pricing discussions, do not apply here. For example, markup pricing generally refers to a broader strategy that can involve various percentages above cost, not strictly limited to doubling. Psychological pricing focuses more on pricing techniques that influence customer perceptions, such as pricing items at $9.99 instead of $10. Competitive pricing involves setting prices based on competitors' actions rather than directly calculating costs. Hence, the distinctive nature of keystoning makes it the correct choice for this particular question.