D G TALENT DEVELOPMENT o Instructions: Answer all boxes highlighted in yellow. Please complete all work within excel. Save to your UDrive folder when complete. 1 2 -3 1. What happens to the retailer's margin if they buy from a different price bracket but the retail price remains unchanged? 3 (Fill in highlighted portions below) Example: Bracket 1 Bracket 2 Bracket 3 6 Case cost $24.20 $24.60 $25.80 7 Case Pack 12 12 12 8 Unit Cost 19 SRP $2.79 $2.79 $2.79 20 Margin $ 21 Margin % 22 23 2. What is the SRP at the lower price brackets if the margin is held constant at 28%? 24 (Fill in highlighted portions below) 25 26 Example: Bracket 1 Bracket 2 Bracket 3 Case cost $24.20 $24.60 $25.80 28 Case Pack 12 12 12 29 Unit Cost 30 SRP 31 Margin $ $0.79 $0.80 $0.84 32 Margin % 28.0% 28.0% 28.0% 33 Principles of Retail Math Pricing Formula Reference Sheet Exercise Type here to search S C Paste BIU-- $ . % 92 Conditional Formatas Cell Formatting Table - Styles Delete - It Format Son Filter Clipboard Font Alignment Number Cells 159 fx B D 33 34 3. Many retailers will split the cost of promoted pricing with the manufacturer by accepting a reduction in their margin. In this type of arrangement both the manufacturer and the retailer will accept a smaller percentage of profit with the idea that the lower price will encourage consumers to buy more and 35 thus increase both volume and total dollar profit. 36 Example Unit 37 38 29 Cost Bill Back Allowance Net Price Case (12 units/Case) $22.20 ($2.40) $19.80 40 42 43 44 45 Unit Price % Margin Everyday 2.59 Promoted 2.19 46 4. When calculating Suggested Retail Price it is important to pay attention to rounding. You have an item that costs $1.25. The retailers gross profit 47 objective is 35%. What does the retail price need to be to hit the objective? 48 49 Facts Cost $1.39 51 Margin 35% 52 SRP 53 54 5. The number you came up with for the retail price in the last slide was not an even number (ex- $1.138 might mean $1.13 or 51.14). Which of these two $5 price options will the retailer choose to round up or round down and WHY? 56 Principles of Retail Math Pricing Formula Reference Sheet Exercise Type here to search board Font Alignment Number Styles Cells A B D G H E Facts Cost Margin% SRP $1.39 35% 5. The number you came up with for the retail price in the last slide was not an even number (ex-$1.138 might mean $1.13 or $1.14). Which of these two price options will the retailer choose to round up or round down - and WHY? 2 14 75 76 Principles of Retail Math Pricing Formula Reference Sheet Exercise Type here to search R