1 / 5

Pricing Math

Pricing Math. Activity # 1:. Explain how markup is calculated for your company. Basic Markup Calculations. Markup is the amount of profit that a business makes off a product after the cost of producing the product is subtracted from the total cost. Markup Equation:

miracle
Download Presentation

Pricing Math

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pricing Math

  2. Activity # 1: Explain how markup is calculated for your company.

  3. Basic Markup Calculations • Markup is the amount of profit that a business makes off a product after the cost of producing the product is subtracted from the total cost. • Markup Equation: • Cost (C) + Markup (MU) = Real Price (RP)

  4. Activity # 2 Identify and describe the various discounts (markdowns) offered to your employees and customers.

  5. Discounts • Employee Discounts: These are discounts given to the employee in order to encourage the employee to spend money in the store. • Discounts from Manufacturers and Distributors Include: • Cash Discounts • Trade Discounts • Quantity Discounts • Promotional Discounts • Seasonal Discounts

More Related