做一个有道德的人主题班会.ppt

Chapter 15 Pricing Merchandise Management Pricing Issues Pricing Strategies Everyday Low Pricing (EDLP) Vs Hi-Lo Pricing How Should Prices Be Set? Demand Oriented Pricing How Do Retailers Set Price? Cost Oriented Pricing Legal Issues in Pricing Pricing Strategies Everyday Low Prices (EDLP) Charge the same price all the time Set prices between regular non-sale price and deep discount sale prices of a high/low pricing competitor. EDLP retailers typically still have some sales. High/Low Pricing Regular prices are higher than EDLP competitors, but merchandise frequently on sale at lower prices. Everyday Low Pricing Wal-Mart, Category Specialists, Dillards, Food Lion Benefits to Consumers Assured of Low Price on Every Visit Less Stockouts Benefits to Retailer Lower Advertising Expense Lower Labor Costs Hi-Lo Pricing Most Department Stores, Publix, Kmart Benefits to Consumer Spend Time to Find Lowest Price Benefits to Retailer Maximize Profits -- Price Discrimination Problem: Trains People to Buy on Deal Pricing Strategies EDLP Builds loyalty – guarantees low prices to customers Lower advertising costs Better supply chain management Fewer stockouts Higher inventory turns Hi-Lo Higher profits – price discrimination More excitement Build short-term sales and generates traffic Considerations in Setting Retail Price Methods for Setting Price Initial and Maintained Markups Initial markup = retail selling price initially placed on the merchandise - cost of goods sold Maintained markup = Actual sales that you get for the merchandise - cost of goods sold Maintained Markup % and Gross Margin Setting Retail Price Based on Costs Initial and Maintained Markup Reductions Markdowns (Sales) Discounts to employees Inventory shrinkage due to shoplifting and employee theft Setting Retail Price Based on Cost Determine Cost of Goods Sold Planned and Forecasted Reductions Desired Maintained Markup Calculate Initial Markup % Based on Cost of Goods Sold, Planned and Forecasted Reduct