An extremely unattractive suit sells for $500 retail and the retailer's margin % is 30% and the wholesaler's margin is 15%. What was the manufacturer's selling price? A 45% retail margin is what % mark up?

An extremely unattractive suit sells for $500 retail and the retailer's margin % is 30% and the wholesaler's margin is 15%. What was the manufacturer's selling price? A 45% retail margin is what % mark up?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter20: Setting Prices

Section: Chapter Questions

Problem 3SC

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Concept explainers

Customary Pricing

There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:

Multiple Unit Pricing

“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”

Question

An extremely unattractive suit sells for $500 retail and the retailer's margin % is 30% and the wholesaler's margin is 15%. What was the manufacturer's selling price?

A 45% retail margin is what % mark up?

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Follow-up Questions

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Follow-up Question

Target buys hand sanitizers from the wholesaler at $3 and sells them in their stores at $8.
1. Find the original markup.
Now, assume the hand sanitizers does not sell for $8 so the store has to reduce the price by 10%. Calculate the final selling price and the maintained markup.

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