Discount retailers sell merchandise at a reduced price. They carry lower product and service costs and lower profit margins. Because they add only a tiny profit margin, they offer lower prices than other retailers. 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.