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CHAPTER 9: RETAIL PRICING - Coggle Diagram
CHAPTER 9: RETAIL PRICING
Pricing Decisions
Factors Influencing Pricing
Legal Constraints
Store Location
Competition
Customer Services
Consumer Price Sensitivity
Store Image
Pricing Policies
At Market
Match Competitor Pricing
Above Market
Focus on Services, Quality, and Location
Below Market
Lower Price to Gain Market Share
Pricing Objectives
Sales-Oriented
Increase Sales Volume or Market Share
Status Quo
Maintain Current Pricing
Match Competitors
Profit-Oriented
Target Return
Maximize Profits
Markups
Initial Markup
Cost to Initial Selling Price
Maintained Markup
Final Markup Based on Actual Sales
Pricing Strategies
Leader Pricing
Low Price on High Demand Items
Odd Pricing
Prices Ending in 5, 8, or 9
Flexible Pricing
Different Prices for Different Customers
One Price Policy
Same Price for All Customers
Variable Pricing
Based on Demand/Supply
Individualized / Self-Selected / Market Segmented
Markdowns
Reasons
Buying / Pricing / Merchandising / Promotion Errors
Timing Policies
Early Markdown (High Turnover Focus)
Late Markdown (Long Trial Period)
Definition
Reduction in Original Price (Temporary or Permanent)