Unit II(1) - UnitII Merchandise RetailPricing Price Lining...

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Unit II Retail Pricing and Repricing of  Merchandise
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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
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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 store’s 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
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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:
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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
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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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