Retail pricing

It gives information about the RETAIL PRICING & pricing strategy

1. RETAIL PRICING & pricing strategy

2. What is Retail? Sale of good from fixed point to Consumer in small quantities for his own consumption. Retailers are in business to make a profit. A retailer simply cannot succeed in business if they continue to sell their products below cost.

3. RETAIL PRICING: Retail price literally means the price a retail business charges for a particular good or service. Understanding the significance of a retail price and its relationship to wholesale and marketing is important for businesses and consumers. Another term substituted for retail price is " sticker price“. Retailers typically convey a retail price to consumers with on-package stickers or shelf labels.

4. PRICE STRATEGY: P rice strategy can be articulated as purposeful pricing by channel and customer to maximize value perception and business results and to increase customer engagement and loyalty. T he retail price of the products should more than cover the cost of obtaining the goods plus the expenses related to operating the business.

5. RETAIL PRICING STRATEGY IN SETTING THE RIGHT PRICE: Cost Plus Pricing. MSRP. Competitive Pricing. Pricing Below Competition. Prestige Pricing (Pricing Above Competition). Pscychological Pricing. Multiple pricing. Discount Pricing.

6. Cost Plus Pricing: It takes into account the profit of the Retailer. The increase in the retailer price of the merchandise is directly proportional to the increase in cost price. COST PRICE OF THE PRODUCT + PROFIT ( Decided by the Retailer)= FINAL PRICE OF THE MERCHANDISE .

7. MSRP (Manufacturers Suggested Retail Price): As Price suggested by the Manufacturer. Retailers initially quote higher price and reduce the price on customers request [ Condition of Bargain ]. The MSRP is the price a manufacturer recommends to a retailer, but it is up to a retailer in most cases whether to use the MSRP. Discount retailers often price items below MSRP.

8. Competitive Pricing Excellent customer service over their competitors. The price of merchandise is more or less similar to the competitors but add some attractive benefits

9. Pricing Below Competition: The price of the merchandise is kept lesser than the price offered by the competitors. Pricing Above Competition: Price is set slightly above the Competitors. Under the following conditions: Exclusive brands at the store. Excellent customer service. Latest Trends Merchandise not available at any other store.

10. Psychological Pricing: Certain price of a product that the customers willingly purchase. The consumer perceives such prices to be correct. The retailer sets the price which would meet the expectations of the buyers and they would easily buy the merchandise.

11. Multiple Pricing: Multiple products for single price. The retailers combine few products to sold for a single fixed price. Eg : 3 shirts for Rs:100. Discount Pricing: Retailer sells his merchandise at a discounted price during off season , coupons, seasonal times, to clear out his stock.

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