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. “These difficulties reportedly arise from some of the pricing practices of some supermarkets, such as frequent specials, short-term lowered prices, bulk-buy promotions, member-only prices and bundledprices.”
Setting initial pricing high may discourage customers or may create the impression of premium quality. Low prices, while more accessible, could permanently mark the product as a commodity. Pricing determines your long-term profitability. Low prices leave little room for promotions or end-of-lifecycle markdowns.
Product merchandising is a critical component of retail operations, focusing on the strategic presentation and promotion of goods to stimulate customer interest and drive sales. By promoting specific items, retailers can efficiently manage stock levels and reduce excess inventory.
And since most markdowns are not planned for in advance (or at least accounted for in the pre-season planning stages), they frequently drain profits considerably more than they have to. And cutting prices is the only way to clear this leftover inventory at the end of a season or of a product’s lifecycle.
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