Markdown strategy helps you price your product during a seasonal sale or create a plan before going to the next selling season to keep all products moving through the store as quickly as possible. This strategy is most effective for stores whose customers visit frequently because the store needs to maintain an image of always having exciting new products available. One more reason to use this strategy is Poor performance of the product or reduction of the price because of a product’s inability to sell at its original price.
Markup strategy helps you save lots of time by pricing products quickly. If you do not keep up with the prices of your competitors though, you can end up losing lots of money. This will happen if your prices are over or underpriced. In one case you will lose your customers and in the other, you will have lower profit margins. It also helps the vendor to easily calculate profit and Fair price of the product can be easily found. This strategy is mainly used by manufacturers and retailers to calculate their selling price.
This book helps you choose prices that maximize profits and shareholder value while considering consumer and market demand.
Mitesh Maheshwari is a growing entrepreneur in the Apparel business. Born and brought up in Chennai, Mitesh is a graduate in Information Technology. However, during his growing days, Mitesh was always drawn towards the challenging and interesting world of business which led him to do his post-graduation in International Business Management. As one would normally agree, there’s no better teacher than experience, Mitesh has learned his tricks of the trade during his growth from a young lad to promising entrepreneur and has vast experience investing in Global market and Startups.
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