off-price retailer

Examples of off-price retailer in the following topics:

• Value of Retailing

  • Retail comes from the Old French word tailer (compare modern French retailler), which means "to cut off, clip, pare, divide" in terms of tailoring (1365).
  • It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433 (from the Middle French retail, "piece cut off, shred, scrap, paring").
  • Retailing second hand or used goods, it enables consumers to purchase goods at deeply discounted prices or to borrow against and using the value of the product as collateral against a cash loan.
  • It is not unusual for non-profit organizations to use retailing as a fund raising tool; selling candy bars, magazine subscriptions, food and other item transforms the price paid to a donation or conversely when goods are donated and then retailed to the public by the non-profit organization to raise funds.
  • In most cases the price paid for the goods or the goods donated are often recognized as a tax-deductible item.

• Nonstore Retailers

  • Non-store retailing is the selling of goods and services outside the confines of a retail facility.
  • Non-store retailing is the selling of goods and services outside the confines of a retail facility.
  • It is a generic term describing retailing taking place outside of shops and stores (i.e., off the premises of fixed retail locations and of markets stands).
  • The non-store distribution channel can be divided into direct selling (off-premises sales) and distance selling, the latter including all forms of electronic commerce.
  • Flash deal sites have been the trend of the moment, where consumers generally have a membership with a specific site and are given access to a limited-time price on a good.

• Trends in Retailing

  • They are capable of offering lower retail prices because of the combined warehouse/retail store model and by offering products in bulk to customers .
  • Current trends include channel marketing, cross promotional campaigns involving multiple products and companies, on and off line marketing campaigns, in-store and online campaigns, sales tool usage and interactive marketing.
  • The new clustering model based upon a bottom up behavioral approach enables retailers to quickly identify clusters of stores with similar demand patterns and to develop truly customer-centric marketing, merchandising, space and pricing strategies.
  • Recent retailing trends have led to the development of warehouse-style retail stores.
  • These high-ceiling buildings display retail goods on tall, heavy duty industrial racks rather than conventional retail shelving.

• Channel Integration

  • The integration of marketing channels involves a process known as multi-channel retailing.
  • Multi-channel retailing is the merging of retail operations in such a manner that enables the transacting of a customer via many connected channels.
  • Omni-channel retailing is very similar to, and an evolution of, multi-channel retailing.
  • Omni-channel retailing with the connected consumer uses all shopping channels from the same database of products, prices, promotions, etc.
  • As socially connected consumers move from one channel to another, they expect their stopping point to be bookmarked, allowing them to return through a different channel to finish browsing or purchasing where they left off.

• Elasticity Conditions for Price Discrimination

  • It is possible for some industries to offer retailers different prices based solely on the volume of products purchased.
  • Coupons: coupons are used in retail as a way to distinguish customers by their reserve price.
  • By offering coupons, a producer can charge a higher price to price-insensitive customers and provide a discount to price-sensitive individuals.
  • Less publicized discounts are also offered to off duty service workers such as police.
  • Retail incentives: retail incentives are used to increase market share or revenues.

• Trade vs. Consumer Promotions

  • Trade promotions are marketing activities executed between manufacturers and retailers.
  • Trade contests are used to encourage retailers to sell products, as the retailer who sells the most wins a prize.
  • Training programs teach employees or retailers the benefits and uses of a product.
  • Price deals are temporary reductions in price, such as 50% off an item.
  • Discounts are reductions to a basic price of goods or services.

• Analysis of Price Discrimination

  • Second degree price discrimination: the price of a good or service varies according to the quantity demanded.
  • By using price discrimination, the seller makes more revenue, even off of the price sensitive consumers.
  • Premium pricing: uses price discrimination to price products higher than the marginal cost of production.
  • Gender based prices: uses price discrimination based on gender.
  • Retail incentives: uses price discrimination to offer special discounts to consumers in order to increase revenue.

• Methods in Retail Inventory

  • The retail inventory method uses a cost to retail price ratio.
  • Total the beginning inventory and the net amount of goods purchased during the period at both cost and retail prices.
  • Divide the cost of goods available for sale by the retail price of the goods available for sale to find the cost/retail price ratio.
  • Deduct the retail sales from the retail price of the goods available for sale to determine ending inventory at retail.
  • Multiply the cost/retail price ratio or percentage by the ending inventory at retail prices to reduce it to the ending inventory at cost.

• Functions of Intermediaries

  • There are four generally recognized broad groups of intermediaries: agents, wholesalers, distributors, and retailers.
  • Wholesalers rarely sell to the final user; rather, they sell the products to other intermediaries such as retailers, for a higher price than they paid.
  • Distributors function similarly to wholesalers in that they take ownership of the product, store it, and sell it off at a profit to retailers or other intermediaries.
  • A "level one" channel has a single intermediary, usually from the manufacturer to the retailer to the consumer.
  • Retailers sell the products to the end user.

• Settling the List Price

  • A list price must be close to the maximum price that customers are prepared to pay and yield the maximum profit for the retailer.
  • The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product is the price which the manufacturer recommends to the retailer.
  • In certain supply chains, where a manufacturer sells to a wholesale distributor, and the distributor in turn sells to a retailer, the use of a suggested retail price is used to denote the price to use when selling to the consumer.
  • In that case MSRP is used to convey manufacturer suggested retail price.
  • Retailers must ask questions to set a list price.