1. Margins. It is very important to know how to compute margins properly.  

a. To that end, it is equally important to continuously check the prices on merchandise.  

b. Franchisees should be aware that notices from distributors informing retailers of price changes are rare. Do not expect to receive such notices. It is, therefore, a good habit to check prices monthly yourself.  

c. Remember to include shipping charges when calculating margins. 

d. Margins will vary for each category of products.  

2. Math Computation Sheet. See Appendix “J” for instructions on computing margins.  

3. Who is the Customer? If your store is part of an integrated retail environment, such as a mall, residence, or office building, we regard the employees and tenants of your facility and its immediate surrounding areas as the typical Street Corner customer. Your pricing should be geared to this market. If the employees and tenants in your facility accept the prices as set, it is likely that the general public will also accept them.  

a. Listen to the employees and tenants of your building about items they would like to see carried by the store. 

b. If you build a good rapport with these folks, it is likely that they in turn will generate business for you. Keep in mind, customers come into their stores and ask where particular items can be found. Employees in your area are very familiar with the Street Corner product line and are a valuable source of advertising and referrals.  

c. Review customer responses to prices and be sure to continuously review your customers responses to set pricing levels.  

(1) In some instances, complaints may be voiced regarding the prices of certain items.  

(2) If the merchandise is not moving and complaints have been voiced, it is likely that the market will not bear the price set for that item.  

(3) On the other hand, items that have a high turnover rate may be targeted for a price increase. Listen for complaints once the price is raised.  

Powered by BetterDocs