article thumbnail

10 Leading Strategies for Pricing New Products (2021)

Retalon

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. High prices generate higher per-unit margins but may constrain top-line revenue. Bundle pricing.

article thumbnail

5 Highly Effective Retail Markdown Strategies that Work in 2021

Retalon

What is a retail markdown strategy? A retail markdown strategy is a plan that describes when and how certain products should go on markdown. Having a markdown strategy is important because, all too often, markdowns are a kneejerk reaction to end-of-life inventories. ” What are markdowns in retail?

article thumbnail

8 Effective Ways to Increase Profit Margins in Retail

V Count

Being competitive to draw clients while making sure the retail store makes enough money from each sale is how profit margins are managed. The ratio between a product’s cost base and its selling price is known as the profit margin. If you’re mostly targeting price-sensitive retailers, consider this strategy instead.