Lesson 88-Pricing

*Price-refers to value utility of the merchandise.
Consider the following in Pricing the Merchandise:
1. Value of goods & services.
2. Desirability of goods & services.
3. Season of the year
4. Competition of other brands & stores
5. Attitude of customers towards prices
6. Mark-up needs for profitability of the store.
*Mark-up-the difference between the cost price & the selling price of a product.
Formula for a Reasonable Mark-up:
Mark-up Percentage=100 x Estimated Expenses
____________________
Estimated Gross Sales-Estimated Expenses

Labels & Price Tags:
Republic Act No.71-The Price Tag Law(requires the proper labeling & price tag to be attached to the merchandise.)
Ways of Marking the Merchandise:
1. String Tags
2.Price Tickets
3.Hand & Rubber Stamp
4.Slot Tickets
5.Soft Special Pencil
6.Gummed Labels