Retailer

From ArticleWorld

A retailer buys products in large quantities from the manufacturer or importer, and then sells individual items or small quantities to the public.

Types of retailers

There are three main types of retailers. Counter service is rare these days, most common is self service, and the third, quickly increasing type, is online retailing. Some stores employ more than one method of retailing. They may be mainly a self service store but offer counter service for expensive, or controlled, items. The term retailer may also be used to refer to service providers like a telephone or power company.

Retail pricing

Most retailers use what is called cost-plus pricing, meaning the retailers cost plus an added markup.The markup is usually a set percentage of the cost of the item. The manufacturers suggested list price is often printed on the product, and some retailers choose to use this price. Psychological prices are odd numbers, like $4.95, and are hoped, by the retailer, to be perceived as low. Price discrimination occurs when the same goods or services are sold, by the same retailer, for different prices.This commonly occurs with airlines. Another place price discrimination frequently takes place is in pricing services that cannot be resold. One example would be reduced price attraction tickets for seniors or students. Price discrimination may also be in place, with the prices determined by the number of items sold, or by location. In the United States, many bars and nightclubs have what is called Ladies’ Night, and price discrimination is in practiced by giving female patrons free, or reduced price, drinks. Haggling is used in many cultures. This method of retailing allows the customer to negotiate with the retailer. Haggling is common in home and automobile sales.