Pricing in Retail

Group No. 11

Aashi Sharma 204001

Abhishek Patel 204003
Deshmukh Aniket 204015
Dibyajeet Behera 204016
Gopesh Panda 204018
 Retail Pricing

• It is core aspect of all the businesses that sell

products
• Retail price is differentiated from manufacturer
price and distributor price, which are prices set
from one seller to another through the supply
chain
• But final aim is to keep making profit
Manufacturer suggested retail pricing (MSRP)

• To standardize the prices of products sold across

locations (Generally used for mass produced items)
• It takes into account the cost of manufacturing
the product, a profit margin for both the
manufacturer and the retailer, as well as the
prices of similar products
• This approach takes the guesswork out of price-
setting for retailers, saving them time and energy.
 Keystone Pricing

• Doubling of the manufacturing cost to set a retail

price
• It works for few items and does not work for
most of items
• Generally, this pricing affects the profitability of
products
 Bundle Pricing

• It’s when retailers sell a group of products for a

single price
• It is preferred as this pricing streamlines retailer's
marketing campaigns and satisfies customers too
• Leads to large volume purchases of certain
products
• Disadvantage in form of cognitive dissonance of
buyers
 Psychological Pricing

• It is based on a theory that customers have trust

in prices ending with odd numbers like 5,7 or 9
• Instead of buying item for Rs.1000, customer
prefers price at Rs.999 and will perceive it to be
better deal based on number alone
• Useful for brands that want to increase their
overall sales volume by making impulse
purchases by customers
 VUCA Analysis

VOLATILITY UNCERTAINTY

• Changing customer preferences • Shift in consumer trend(from

• Changing consumer purchasing offline to online)
power • Continuous fluctuations in
discounts on ecommerce

COMPLEXITY AMBIGUITY

Conflict over allowing FDI among

Varying taxation policy
national and state government
THANK YOU..