Retail pricing

Theoretically, retailers maximize their profits by setting prices based on the price sensitivity of customers and the cost of merchandise and considering the prices being charged by competitors. Initial markup – retail selling price initially set for the merchandise minus the cost of the merchandise

1. Retail Pricing By: Abhinav Kumar

2. Retail Pricing Concept Integral part of retail marketing mix Source of revenue for the retailer Communicate the image of the retail store Considering Factors Demand For the product and the target market Store policies and the image to be created Competition for the product and the competitor’s price Economic condition prevailing at that time

3. Importance Profit Customer Satisfaction Retain Positioning Pricing options Discount orientation At the market orientation Upscale orientation Retail Pricing

4. Factors Affecting a Retail Price Strategy External Factors Competition  Consumers Government control Economic conditions Channel intermediaries Internal Factors Cost The predetermined objectives Image of the firm Product life cycle Credit period offered Promotional activity

5. Consumers Economic consumers Status-oriented consumers Assortment-oriented consumer Personalizing consumers Convenience-oriented consumers Government control Horizontal price fixing Vertical price fixing Price discrimination Minimum price law Unit pricing Item price removal External Factors

6. Different Types of Pricing Models

7. Pricing Strategy

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