Pricing Strategies

1
Pricing Strategies
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Pricing

• Buyer
• The role of the buyer is too purchase goods for
  resale to the customer. If the buyer makes good
  decisions , the store will be profitable.
• A few bad decisions can hurt sales.

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Pricing
Merchandising Plan Factors

• Researching Vendors
• Past Experiences
• Buying Arrangements
• Special Services Offered
• Vendor Discounts
• Payment Arrangements
• Evaluating

4
Pricing

• Steps for Product Pricing
• Determine Objectives
• Study Costs
• Estimate Demand
• Study Competition
• Select Strategy
• Set price

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Pricing

• Pricing Decisions
• For the Tahoma student store most vendor
  decisions are made by the district office.
• The state requires that we make a minimum 35
  profit on all merchandise.
• We can make more.

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Pricing

• Pricing Strategies
• Mr. Parr wants all prices to be even.
• (1.50 - .50 - .75 - 1.25)
• No Odd-Even or Multiple pricing.
• (1.49 - .49 )
• (2 for 1.50

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Pricing

• Steps for Product Pricing
• Determine Objectives
• Study Costs
• Estimate Demand
• Study Competition
• Select Strategy
• Set price

8
Pricing

• Steps for Product Pricing
• Determine Objectives
• Study Costs
• Estimate Demand
• Study Competition
• Select Strategy
• Set price

9
Pricing test

• What is the purpose of a buyer?
• Identify four factors that might be considered
  before determining a price?
• The six steps of the pricing process?

10
Pricing test

• Most vendors are selected by_________________?
• The minimum markup is?
• Identify three pricing strategies? Which one
  does the student store use?