How are store prices set??

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How are store prices set??

Jenn

I know one thing is by the loss of stolen items from the store.

lunatic

It the most basic sense:

Store (retail) price = price the store paid (wholesale) + the desired profit margin

omnisource

Percentage markup over cost.

Doctor Deth

by someone with accounting knowledge who can figure out what you need to charge in order to cover all your costs, payroll and make a profit

Stuart

Usually on a percentage.

For instance, if a store decides that they want to maintain a 12% profit margin across the board, they will price an item that they paid $1 for at $1.12.

Now, the store doesn't MAKE 12 cents on the dollar - they have to advertise and pay employees and electric bills and so on. Their actual profit earnings can be much smaller than that.

And it averages out. They may mark up an item like coffee 25% and only mark up an item like potatoes 2%, but across the board, the whole store's profit is supposed to hit the profit goal.

Texas granny turtle

As a store stocker I learned price to sell is suggested by supplier. Also the more the store buys they get a better price. such as buy 10 get one free,, Then the mangament decides the price suggested or for a SALE maybe less.. A $5 item may of cost 2.50,, (50% profit) so it can be sold for $4 and still come out ok . Also supply and demand plays a role as we see everyy Xmas holiday Things that just dont sale for long time get the most cut to move it out.. I think it is called dead space.

j f

How much you got?

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