Retail travel services (TM 334) Lecture 4

1. Retail travel services (TM 334) Lecture 4

3. OPERATIONS Retail pricing: The pricing technique used by most retailers is cost-plus pricing. This involves adding a mark-up amount (or percentage) to the retailer's cost. Another common technique is suggested retail pricing This simply involves charging the amount suggested by the manufacturer and usually printed on the product by the manufacturer.

4. Staffing : Because patronage at a retail outlet varies flexibility in scheduling is desirable. Employee scheduling software is sold which, using known patterns of customer patronage, more or less reliably predicts the need for staffing for various functions at times of the year, day of the month or week, and time of day

5. Transfer mechanisms : There are several ways in which consumers can receive goods from a retailer: Counter service Delivery Door-to-door Self-service Digital delivery

6. Second-hand retail Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the shop to be sold. In give-away shops goods can be taken for free Another form is the pawnshop, in which goods are sold that were used as collateral for loans. There are also "consignment" shops, which are where a person can place an item in a store and if it sells, the person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is that the established shop gives the item exposure to more potential buyers

7. Challenges Toachieve and maintain a foothold in an existing market, a prospective retail establishment must overcome the following hurdles: Regulatory barriers including Restrictions on real estate purchases, especially as imposed by local governments and against "big-box" chain retailers. Restrictions on foreign investment in retailers, in terms of both absolute amount of financing provided and percentage share of voting stock. Unfavourable taxation structures, especially those designed to penalize or keep out "big box" retailers Absence of developed supply chain and integrated IT management.

8. Sales techniques Behind the scenes at retail, there is another factor at work. Corporations and independent store owners alike are always trying to get the edge on their competitors. One way to do this is to hire a merchandising solutions company to design custom store displays that will attract more customers in a certain demographic. The nation's largest retailers spend millions every year on in-store marketing programs that correspond to seasonal and promotional changes. As products change, so will a retail landscape. Retailers can also use facing techniques to create the look of a perfectly stocked store, even when it is not. A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large area. These stores are often used to "anchor" a shopping mall or plaza, generating foot traffic, which is capitalized upon by smaller retailers