Last two sections, we know about price war, to get In-depth understanding of it, we need to know one of the most important price in market price system ---- retail price.
We all want to know how to work successfully on a sexy lingerie shop, and how to find a proper price for our merchandise. first, I'd like to introduce the the definition of retail price: Retail price is the price retailers selling goods to end-consumer.
then, we will interested in the components of retail price:
(1) the price retailer purchases from wholesalers or agent, or directly from the manufacturer;
(2) costs of Transport - the transportation-costs of import from other country is also a big afford to retailers.
(3) Circulation costs - interests of investment, management fees, etc.
(4) Tax - simply, legal operation must pay certain taxes.
(5) Profit - your final profits, compared to the previous payment, how much returns to you. Well, you may think that you already know how to pricing your sexy lingerie now: adding the five points above together. I do not recommend that. Sexy lingerie is different from normal lingerie, you need understand the characteristics of sexy lingerie retail price. In addition to the retail price's own characteristics, there are other three points:
(1) significant price differences, no uniform price - differences of region brings significant differences price on your sexy lingerie.
(2) small ability of price-self-discipline - most of the retail price was adjusted by retailers themselves.
(3) price changes - based on the components of the retail price, the procurement price, changes very often, and manufacturers will also make price adjustments based on materials, software and hardware facilities etc.. Now, we begin pricing your merchandise. Usually, retailer make their decision according to the composition of the retail price and use the retail price from other sexy lingerie shops as a reference. finally they count out a value: profit. This number is often a percent. No matter how big this number is, what here want to confirm are the principles while pricing:
(1) retail price level have to adapt to the level of consumption. For high-level(famous brand, high quality) sexy lingerie, you can pricing a proper higher number, but the level of consumption is the limitation;
(2) take into account the profits of both wholesale enterprises and retailer.
(3) Retail shop or enterprises should be benefitted from retail price, and your retail price should promote your management and economical accounting.
(4) Retail price should help on stabilize the market.
well, after we know the retail price, we can use it to explain some problems in price war. Remember the questions we leave in Section 1? next time, we will find them out.
If you have any suggestion on this article, please feel free to tell us.
