It gives information about the RETAIL PRICING & pricing strategy

1. RETAIL PRICING &
PRICING STRATEGY

2. WHAT IS RETAIL?
 Sale of good from fixed point to Consumer in
small quantities for his own consumption.
 Retailers are in business to make a profit.
 A retailer simply cannot succeed in business if
they continue to sell their products below cost.

3. RETAIL PRICING:
 Retail price literally means the price a retail business
charges for a particular good or service.
 Understanding the significance of a retail price and its
relationship to wholesale and marketing is important for
businesses and consumers.
 Another term substituted for retail price is "sticker
price“. Retailers typically convey a retail price to
consumers with on-package stickers or shelf labels.

4. PRICE STRATEGY:
 Price strategy can be articulated as purposeful pricing by
channel and customer to maximize value perception and
business results and to increase customer engagement
and loyalty.
 The retail price of the products should more than cover
the cost of obtaining the goods plus the expenses
related to operating the business.

5. RETAIL PRICING STRATEGY IN
SETTING THE RIGHT PRICE:
 Cost Plus Pricing.
 MSRP.
 Competitive Pricing.
 Pricing Below Competition.
 Prestige Pricing (Pricing Above Competition).
 Pscychological Pricing.
 Multiple pricing.
 Discount Pricing.

6. COST PLUS PRICING:
 It takes into account the profit of the Retailer.
 The increase in the retailer price of the
merchandise is directly proportional to the increase
in cost price.
COST PRICE OF THE PRODUCT + PROFIT
( Decided by the Retailer)= FINAL PRICE OF
THE MERCHANDISE.

7. MSRP (MANUFACTURERS SUGGESTED
RETAIL PRICE):
 As Price suggested by the Manufacturer.
 Retailers initially quote higher price and reduce the price on
customers request [Condition of Bargain].
 The MSRP is the price a manufacturer recommends to a
retailer, but it is up to a retailer in most cases whether to use the
MSRP. Discount retailers often price items below MSRP.

8. Competitive Pricing
• Excellent customer service over their
competitors.
• The price of merchandise is more or less similar
to the competitors but add some attractive
benefits

9. Pricing Below Competition:
 The price of the merchandise is kept lesser than the price
offered by the competitors.
Pricing Above Competition:
 Price is set slightly above the Competitors.
 Under the following conditions:
 Exclusive brands at the store.
 Excellent customer service.
 Latest Trends
 Merchandise not available at any other
store.

10. PSYCHOLOGICAL PRICING:
 Certain price of a product that the customers
willingly purchase.
 The consumer perceives such prices to be correct.
 The retailer sets the price which would meet the
expectations of the buyers and they would easily
buy the merchandise.

11. Multiple Pricing:
 Multiple products for single price.
 The retailers combine few products to sold for a single fixed
price.
 Eg: 3 shirts for Rs:100.
Discount Pricing:
 Retailer sells his merchandise at a discounted price during off
season , coupons, seasonal times, to clear out his stock.

12. Any comments ?