Marketing Agency

Price Lining Price lining is a technique used by retailers to group common items at set price-points. Rather than setting the retail price based on cost or competition, price lining is a way to simplify… Price Lining

Loss Leader A loss leader (also leader) is a pricing strategy where a product is sold at a price at or below its market cost to stimulate other sales of more profitable goods or services. “Loss lead” describes… Loss Leader

Pricing Techniques What you’ll learn to do: Examine pricing techniques used by retailers to increase sales and profits Are the business objectives of increasing sales and increasing profits mutually exclusive? We may think that the easiest… pricing techniques used by retailers to increase sales and profits

Liquidating Markdown Merchandise Once retailers decide to markdown a product or product category, it remains in inventory until sold out. How do retailers handle the process from initial markdown to final liquidation? The first method… Liquidating Markdown Merchandise

Reducing Product Markdowns Every retail buyer or store owner wants to reduce markdowns. The old-school adages that address this issue is “buy the right stuff” or “buy less and sell more.” Markdowns should not be… Reducing Product Markdowns

Demand-Oriented Pricing In addition to cost-oriented or competition-oriented pricing, demand-oriented pricing is also seen in the retail industry. It is a strategy based on known periods or high or low demand and the elasticity of… Demand-Oriented Pricing

Competition-Oriented Pricing Let us examine another method to develop retail pricing strategy based not on cost but instead based on competition. Competitor-based pricing, or market pricing, uses competitor’s pricing, promotions and inventory position to set… Competition-Oriented Pricing

Break-Even Point When we bring the topic of break-even analysis in to our discussion, we will need to add some additional components to our thinking. A retailer will need to understand that there is more… Break-Even Point

Product Pricing Methods What you’ll learn to do: Use various pricing methods to determine product pricing We’ll go into a bit more depth on the math of a cost-oriented approach to retail pricing. First, we will… Product Pricing Methods

Price Elasticity Calculations Remember, elasticity measures the responsiveness of one variable to changes in another variable. In the last section we looked at price elasticity of demand, or how much a change in price affects the quantity… Price Elasticity Calculations