Pricing Flashcards
How do you calculate markdown dollars?
Markdown = original retail price - new retail price
How do you calculate off-price markdowns?
Off-price markdowns = (%off) * present retail price
How do you calculate total markdown dollars?
Total = first $ markdown + second $ markdown
How do you calculate planned dollars markdown?
Planned $ markdown = net sales * markdown %
How do you calculate markdown %?
Markdown % = $ markdown / $ net sales
How do you calculate markdown cancellation?
Markdown cancellation = (higher price - markdown price) * units on hand
How do you calculate initial markup?
IMU % = (expenses + profit + reductions + alterations - cash discounts) / (net sales + reductions)
What is a price point or price line?
A specific price point within a price zone.
What is a price zone?
A range of prices that appeals to a target customer.
What is a price range?
The spread between the lowest and highest prices offered for sale.
What is odd pricing?
A strategy to have retail prices end in odd numbers.
What is a loss leader?
A widely known brand that is sold at a price close to cost. The purpose is to drive traffic into the store so customers will buy additional merchandise.
What is multiple-unit pricing?
The practice of quoting a special price for the purchase of more than one item.
What is high-low pricing?
A strategy where an item is regular price during the week, and then on sale during the weekend.
What is everyday-low pricing?
A strategy promising consumers a low price without the need to wait for sale price events.
