Strategies Of Retail Pricing

A retail store keeper’s bottom line and profitability are affected by a number of outside influences. One key step on the way to achieving the required profit is setting the correct price. Retail sellers are doing business to get a profit, but calculating on how and what to price items of merchandise does not come easily.

Before we can come to a conclusion on the strategy for retail pricing that should be employed for setting the correct price, we must have knowledge of the costs that come along with the product or products. Two essential elements in determining the cost of a product is the cost of the merchandise in itself and the quantity of operating expenses.