General Retail Business Issues/retail pricing

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Question
Hi Jeff,
I have a small retail store front that sells wine and beer making supplies.
Assuming the customer is going to pay the same retail price, is it better to mark it up and offer say a 10% discount and mention it at cash-out, or just leave the price where it should be?
My thought is, at check-out the customer might appreciate me giving them a 10% discount. Then again on the other hand, Iím afraid people wonít buy when they see a high price for the product on the shelf.
Could you give me your opinion and thoughts?
Thank you,
Randy

Answer
Randy,
I have found the best use of discounting is in order to drive traffic into the store. If the discount is unadvertised or marketed it then becomes just you giving away margin when you already have that business.
I agree it does build good-will, however it may serve you better to create a loyalty reward program where continued business earns the discount.

I hope this helped.
Jeff

General Retail Business Issues

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Jeff Bender

Expertise

If you have questions regarding the methods and metrics practiced by department stores and mass merchants when it comes to how they manage categories and product, I can help.

Experience

I have been a buyer for over 11 years, including within the Target corporation. My expereince has included all apsects of the profit and liability for my areas, analysis, planning, marketing, costing, markdowns, negotiations with vendors, and more.

Education/Credentials
BS, Unversity of Wisconsin, Madison

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