RMG 200 Lecture : Retail Pricing Strategies

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Brent Barr

Document Summary

Pricing practices: 1% pricing mindset, deliver more value, price strategically, know competition, make pricing a process. Pricing issues: pricing strategies (everyday low pricing vs hi-lo pricing [regular prices higher than. Edlp but frequently on sale at lower prices]: how should prices be set (demand oriented pricing, how do retailers set prices? (cost-oriented pricing) Price of merchandise: cost of merchandise, demand, competitors. Methods for setting price: cost-oriented set price at a fixed percent over cost of merchandise, demand-oriented charge as much customers are willing to pay, competitor-oriented set price in relation to competitor"s prices. Income/need for products (-: availability from competitors/frequency and amount spent on product (+) Line pricing marketers set floor and ceiling prices and set retail prices in-between. Price adjustments: markdown, coupons, rebates, price bundling, multiple-unit pricing, Reasons for markdowns: get rid of merch, increase sales, generate cash, increase traffic for product.