Sam was worried about not making his maintained markup when he was pricing the new line of swimwear for his beach store.What should Sam do to assure a profitable season?
A) He should open earlier in the season and close later to attract extra business
B) He should set his initial prices higher to accommodate for markdowns later in the season
C) He should buy and price merchandise using information about competitors' vendors and manufacturers
D) He should only set prices on swimwear based upon reference prices
E) All of these

Question

Quizplus · Accepted Answer

Setting initial prices higher to accommodate for markdowns later in the season is a common strategy in retail to ensure that even with discounted prices, the final profit margin remains satisfactory. This way, Sam can maintain his markup while still being able to offer sales and promotions to drive sales. Opening earlier or buying from competitors' vendors may not necessarily guarantee a profitable season, and setting prices solely based on reference prices may not account for the unique expenses and profit goals of Sam's store.

Sam Was Worried About Not Making His Maintained Markup When