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Subject:
How much on-sales Off?
Category: Business and Money > Advertising and Marketing Asked by: cyberowl-ga List Price: $20.00 |
Posted:
10 Apr 2006 20:38 PDT
Expires: 10 May 2006 20:38 PDT Question ID: 717641 |
Hi guys my question is straightforward and simple. When retailer (like Wal-Mart) wants to put some product (say DVD Player) on-Sale, How he can decided how much "Off" he should give to customers to increase X percentage of sales/customers/profits etc. Like What would be the impact on overall profit or Sales when i put product X on 50% and what if i place it on 75% Off. Furthermore, i would like to know the exisitng models (Mathematical, Literature, Theoratical) to plan the "Sale-Price" for particluar product. I am interested in any retail store products as an example. Looking forward for quick response |
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There is no answer at this time. |
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Subject:
Re: How much on-sales Off?
From: probonopublico-ga on 11 Apr 2006 01:04 PDT |
I understand that a lot of the Special Offers are funded by the manufacturer. |
Subject:
Re: How much on-sales Off?
From: jack_of_few_trades-ga on 11 Apr 2006 04:58 PDT |
It also varies greatly from product to product. I rarely see cars for sale for more than 15% less than retail, yet jewelry is rarely less than 60% off at any store. If you've ever shopped at Khol's, you see that 75% of the items in the store are "on sale" when in reality the on sale prices are more realistically their normal prices. And another example of how sales are used; Grocery stores will send out sale fliers advertising 50% off of selected items knowing that people who come in for the sales will stay and buy other goods. Something to keep in mind when you offer a sale is; How many people who would have bought the good from you at full price will buy the good cheaper because of the sale? That is the real cost of a sale (as long as you're not selling at a loss), and any extra sales (profit) you make first must make up for your loss... then additional sales or repeat buyers you obtain due to the sale are the benefits. |
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