Some manufacturers prefer to open factory outlets to control the way their products reach customers. Full-price retailers offer better quality brands without discounts. Prices reflect a profit margin higher than discount and off-price retailers. To attract customers, retailers use promotional pricing, placing selected items on sale. Retailers generally set prices by adding a markup percentage to the product's wholesale cost.
Retailers can authorize a markdown , reducing the original price by a percentage.
D. Location Strategy 1. One of the most critical factors for retail success is location. When retailers choose freestanding locations, they build on a busy street without adjacent stores. This keeps real-estate costs low and lets the retailer control the building's look. Freestanding stores can't rely on other stores to attract customers, so they need ongoing marketing campaigns.