Retail Pricing - Different Types of Pricing Models The sale of goods from fixed points (malls, department stores, supermarkets and so on) to the consumer in small quantities for his own consumption is called as retail. According to the concept of retailing, a retailer doesn’t sell products in bulk; instead sells the merchandise in small units to the end-users. Retail Pricing Cost Plus Pricing Mechanism Every organization runs to earn profits and so is the retail industry. Cost plus pricing works on the following principle: Cost Price of the product + Profit (Decided by the retailer) = Final price of the merchandise. According to cost plus pricing strategy the retailer adds some extra amount to the actual cost price of the product to earn his share of profits. The final price of the merchandise includes the profit as decided by the retailer. Cost Plus Pricing Cost plus pricing strategy takes into account the profit of the retailer. Cost plus pricing is an ...
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