The Pricing Strategy For New Clothing Products

(1) the composition of retail prices

1, purchase price

That is to say, the adults who purchase the goods are different because of the different purchasing channels. If they are directly stocked from the factory, the purchase price is the factory's factory price; if the purchase is from the wholesale enterprise, the purchase price is the wholesale price of the wholesale enterprise.

2, procurement costs

The purchase cost is all the expenses paid in the process of commodity purchase. Commodity purchase price plus purchase cost constitute the cost of commodity purchase.

3, sales expenses

Selling expenses are expenses incurred in the sale of goods. Purchase plus sales cost constitutes the cost of goods sold in a store.

4. tax on sales

Sales tax is the tax paid to the state in the sale of goods.

5, sales profits

The profit earned by a store. The selling price of goods minus the sales tax and the selling cost is the sales profit of the shop.

　　 (two) price fixing Factor

1, cost

In a normal market environment, cost should be the lowest economic limit for pricing and the basic factor determining prices. In the market competition, low cost often has greater support in price decision making, so it is easy to maintain competitive advantage and get the expected profit return.

2, market demand

The demand is mainly to understand the market demand elasticity of commodities. Commodities with large demand for elasticity will immediately affect market demand once prices are adjusted. However, the price elasticity of demand is small and inelastic, and price adjustment generally has no significant impact on sales volume. Therefore, if the demand for a particular commodity is increased in a certain period of time, appropriate price raising measures can be adopted; otherwise, the price should be reduced appropriately.

3, competition

In a competitive market, buyers and sellers are only receivers of prices, not price makers. Prices are determined entirely by supply and demand. In this market condition, fortunately, both sides' actions are dominated by price factors, and all promotional activities will only increase the cost of goods, thus making any promotional activities unnecessary.

4, commodity market characteristics

Consumer purchase frequency

The frequency of purchase affects the turnover rate of goods. Commodity turnover rate is high, should be small profits but quick turnover, suitable for general clothing stores, while high-grade clothing, turnover rate is low, profit margins should be higher.

2. Characteristics of commodities

The quality level of commodities determines the level of pricing, especially in the clothing industry.

Market share

That is, considering competition factors. If goods are competitive, they can adopt the strategy of raising prices, otherwise, they should adopt a low price strategy. Small shops can not independently price based on the cost and expected profits of their own products, but should be priced according to the prices of large commodities of similar commodities. That is, if you rise, I will rise.

Fourth, the economic situation.

　　 (three) determination pricing objective

The most important principle to determine the pricing objective is to match the pricing objectives with the business objectives and market objectives of the store. Generally speaking, the pricing objectives are as follows:

1. Pursue maximum profits.

The pursuit of maximum profit is not the pursuit of maximum price. Unless the store's merchandise is in a certain position in the market.

2. Achieve the expected rate of return on investment.

Choosing a certain investment reward as a pricing target, the main purpose of the north is to obtain stable economic benefits through price means so as to achieve stable development of the shops. Under this pricing objective, the determination of the north of the investment reward is directly related to the price level. However, we must have such an important basis for choosing this goal: shops occupy the leading position in the same industry; we can grasp the market demand and basically control the market share of our store.

3, expand or maintain market share.

Expanding and maintaining market share is a very important goal for large, medium and small shops. Because market share is a direct reflection of the operation of shops and the competitiveness of store goods in the market, which is of great significance for the survival and development of shops.

4, coping with and preventing competition

Many shops, when setting prices, mainly focus on dealing with or avoiding price competition in competitive markets.

5, maintain survival

Shops that aim to maintain survival are often faced with a large backlog of commodities, inflow of funds, unusually competitive situations, and difficulties in changing consumer demand. Under such circumstances, in order to avoid bankruptcy, shops often sell products at the break even price or even at a loss price in order to clear their stocks, recover their capital, overcome financial difficulties, and maintain business.