Unit II(1) - Unit II Retail Pricing and Repricing of...

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Unformatted text preview: Unit II Retail Pricing and Repricing of Merchandise Retail Pricing Price Lining is the practice of predetermining the retail prices at which an assortment of merchandise will be carried A retail buyer selects and offers a merchandise assortment to the consumer at a specific price point or price line , such as $15, $20, and so on The Structuring of Price Lines A price range is the spread from lowest to highest price for example, $8 - $40, with $8 being the lowest and $40 the highest. The price zone refers to a series of price lines that are likely to appeal to one group of stores customers. The three types of price zones: Volume price zone Promotional price zone Prestige prize zone These price zones reflect a retail strategy sometimes referred to as the good, better, and best strategy. Some of the influences on the pricing strategies within Setting Individual Retail Prices What should a buyer consider when setting a retail price on an item? Factors to consider when setting individual retail prices include: Setting Individual Retail Prices Wholesale costs Competition Price Maintenance Policies of Manufacturers, such as suggested retail prices Handling and selling costs Store policies, such as off-price policy Nature of the goods Correlation among departments Supply and demand factors Advantages of Price Lining The advantages of price lining are: Simplifies customer choice, which facilitates selling Enables the store to offer wide assortments at best- selling price lines...
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Unit II(1) - Unit II Retail Pricing and Repricing of...

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