How to save money in a retail store



Never be in a hurry, never be in a hurry to select an item, and never be in a hurry to buy an item unless it is priced right. How do you know it is pieced right? Since we just learned that a furniture operation is a low turn, high margin operation we know that the markut is high on any item. In fact an item in a furniture store is usually marked up at least twice and often two and a half to three times what it cost will be priced on his floor from $2500 to $3000. the markup can even be higher that is, if the retailer has a product he retails exclusively.

Competition will help keep the prices down, but almost every furniture producer publishes a manufacturer’s suggested retail price (MARP) based on a two, to and a half, two point seven, or three times markup. The manufacturer distributes these price lists to dealers, enabling the retailer to show large mark downs on a product to give you the impression you are getting a good deal.

Now, it is a good deal if you understand the game they’re playing. But it’s a bad deal if , by not understanding the game you make decisions based on the amount of the mark down, and cot on actual merchandise compared item to item with a similar piece.

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