Markup Methods in Retail: Choosing the Right Approach to Maximize Profitability
Learn how to choose the right markup method in retail to increase profitability. Explore techniques, tips, and examples for maximum ROI.
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More on Penetration Pricing
One of the most common examples of penetration pricing is ‘buy one get one free’, where you offer an item free with a related purchase. This tactic works much better than a 50% discount, as the word ‘free’ has a strong psychological effect on consumers. Customers often buy other products to compensate for the discounted one. This strategy is an excellent way to move dead stock and introduce new products. A new product can be linked with a top selling product in a similar category.
Exploring the Pros & Cons of Shopping on the Web
Are you considering making an online purchase but not sure it’s a safe decision? See what the advantages and disadvantages of buying online are here!
Using Dynamic Pricing Strategies in Retail
When consumers buy a product regardless of price increases (like cigarettes and fuel), they are considered inelastic. In contrast, elastic products (such as cable TV and movie tickets) suffer from price fluctuations.