Retail Management

SUMMARY: Price plays an important role in retailing as it explains the interrelationship between the objectives of the retail store and the components of the retail mix. A pricing strategy should help retailers earn a profit and, at the same time, benefit the customers.

In this chapter we examined how retailers sets prices. We also studied the numerous determinant of pricing. When setting the price of a product, retailers been in mind three objectives; sales objective, profit and competitive objective

We also discussed the various pricing strategies used by retail organizations like every-day low pricing , high low pricing, coupons, rebates, price bundling, multiple unit pricing, price lining etc. After that we examined the methods of price setting: cost oriented, demand oriented and competition oriented pricing.