Retail Maths for Merchandisers and Buyers

Define the three basic pricing components: retail price, wholesale cost, and markup, and apply the retail price formula: retail price equals wholesale cost plus markup.

Define wholesale cost as invoiced cost, including goods, transport, and insurance, with cash and quantity discounts and retail allowances; use wholesale cost = retail price minus markup.

Calculate markup and markup percentage using retail and wholesale costs to set initial and regional prices, with dollars, percentages, formulas, and numeric examples.

Explore how to calculate individual and gross markup from SKU retail and wholesale costs, including markup price, percentage, and multi-unit totals with practical examples.

Calculate and apply average markups to meet planned profit targets by analyzing total cost, total retail, and balance of purchases across multiple product varieties.

Compute cumulative markup dollars and percent for a season using opening inventory, receipts, and purchases. Apply a six-step method to total retail and wholesale costs and derive the season's markup.

Initial markup sets the first price to cover operating expenses, profit, and transportation, while accounting for reductions, markdowns, allowances, and cash discounts.

Define maintained markup as the actual markup based on net sales and costs. Show formulas to calculate maintained markup dollars and percent.

Explore how retailers use pricing strategies and policies, guided by internal objectives and data mining factors, to set markups. Consider competition, store type, and consumer value in pricing.

Explore pricing types for retailers, including market skimming, market penetration, consumer demand pricing, target costing, segmented pricing, value based pricing, market pricing, below market pricing, and prestige pricing.

Retail maths for merchandisers and buyers explains pricing policies, including product line pricing, zone pricing, discount and promotional pricing, and psychological and geographical considerations.

Plan and monitor markdowns as a percentage of net sales to reflect depreciation, allocate monthly levels, and use price reductions to move inventory and protect cash flow.

Explore the objectives and types of markdowns, and learn how buyers plan, price, and reduce unsold merchandise to meet demand and manage cash flow.

Explore how retailers establish markdown policies to time reductions with the selling season, record data, and plan signage using 25/33/50 percent steps.

Minimize markdowns by identifying target consumer segments, assessing demand, and inspecting arrivals for quality. Leverage vendor resources and planned classifications to protect saleable value and store traffic.