You often
see or hear retailers' advertisements that promise you "quality
merchandise at a fair price." Well, just what is a "fair price?"
As you enter the retailing arena, you will soon learn that there really is no
universally accepted definition. Most of the time the answer is "It
depends. . ." It depends on how much you paid for the merchandise, who you
bought it from, what your competitors are charging, your overhead expenses,
your sales volume, and a hundred other variables.
How you
establish prices for your merchandise will be one of the most important
decisions you will make, since it directly affects that all-important variable,
profit. You must strike a delicate balance, setting a price that is high enough
to allow you to achieve
a reasonable
profit margin and yet low enough to keep your merchandise affordable and
---by-Kofy-Hagan.jpg)
