Marketing – 1/09/18

I.  Bellwork

If you were entering a market with established competitors, explain the pricing strategy you would employ.

II.  Objectives

  • Explain how a company’s profit is related to markup.
  • Use the basic formula for calculating a retail price.
  • Calculate dollar and percentage markup based on cost or retail.
  • Calculate markdowns in dollars and percentages.
  • Calculate maintained markup in dollars and percentages

III.  Discussion:  Calculating Prices p.627-637

A. Basic mark up Calculations  C+MU=RP

B.  Percentage mark-up   RP – C = MU

C.  Based on Cost     MU/C

D.  Based on retail Price  MU/RP

E.  Cost Method of Pricing   c*MU%=MU                C+MU=RP

F.  Retail Method of Pricing

G.  Markdown

IV. Classwork

  • P629 Practice  1-2
  • P630 Practice 1-3
  • P634 Practice 1-2
  • P635 Practice 1-2
  • P637 Q&A 1-3


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