retail pricing

Chapter 9

Retail Pricing

Price elasticity demand can change quantities customer will buy.

Elastic : Small percentage change in price to substantial quantities                 unit bought.

inelastic: large percentage change in price lead to small percentage                  will change quantities unit bought.

Markup pricing calculation

Markup % = Retail selling price - merchandise cost

                                             at Retail                    Retail selling price

                                                    or

                            Markup % = Planned retail operating expenses + planned profit

                                            at retail                       Planned net sales

Specific pricing decision

1. how long prices maintained?
2. odd price being use? odd price ( 199 shop)
3. should customer get discount from purchased?