Retail Dogma

Pricing

Pricing Power

Pricing power is the company’s ability to increase its prices, with little to no change on demand for its products. It is explained through the concept of price elasticity of demand, which measures the degree of demand reduction as a reaction to price increases. Pricing Power Example Let’s explain pricing power through two examples of …

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Loss Leader Pricing Strategy

Loss leader pricing strategy is a marketing tactic used by retailers to sell one product at loss (the loss leader) in a hope that it will lead to more traffic and result in higher sales and profits overall. What is a Loss Leader? The loss leader is the product that is sold at loss. It …

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Intake Margin: How to Set it Right?

Intake margin is the margin you get with the initial price you set when you first receive the product. That’s why it is called “intake” margin. It is an important figure for any retail or e-commerce manager, because it plays an essential role in retail budgeting, buying and pricing. Retailers understand that setting a product …

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Pricing Strategies Considerations

There are different pricing strategies used to price any type of product or service. In many cases, a mixture of strategies get applied, rather than sticking to one pricing strategy only; which is our preferred method. Many businesses base their pricing solely on the cost of the product, and add a specific markup to it. …

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