{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Price floor - Price floor-the minimum price below which a...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Price floor -the minimum price below which a product should not be priced Skimming -charge the highest possible price that customers who most desire the product will pay Penetration -using low profit margins to generate greater sales; usually used to quickly gain market shares Loss leaders -pricing specific products at a point that will not generate any profits; purpose is to build traffic Automatic markdowns -placing a predetermined markdown on merchandise that remains unsold after a given period of time Markdown percentage -a control tool used by buyers that is calculated by dividing total dollar markdowns by total sales Markdown percent= dollar markdown/total sales Off-retail percentage -percentage used for advertising purposes that is calculated by dividing the amount of markdown by the original retail price Off-retail percentage= markdown/original retail price Markdown cancellation -increases in the retail price to offset all or part of previously taken markdowns Additional markups
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}