Retail theatre.

/Retail theatre.

Here’s how it works, according to one industry consultant describing an actual sweater sold at a major retailer. A supplier sells the sweater to a retailer for roughly $14.50. The suggested retail price is $50, which gives the retailer a roughly 70% markup. A few sweaters sell at that price, but more sell at the first markdown of $44.99, and the bulk sell at the final discount price of $21.99. That produces an average unit retail price of $28 and gives the store about a 45% gross margin on the product.

–How retail “sales” actually work.

2017-07-17T11:11:47+00:0010th January, 2014|Tags: business|Comments Off on Retail theatre.