Get Retail Price List & Order Form - Easystand

Cost is typically the expense incurred for making a product or service that is sold by a company. Price is the amount a customer is willing to pay for a product or service. The cost of producing a product has a direct impact on both the price of the product and the profit earned from its sale.

The retail price is what consumers pay for the finished product when it is sold. These customers don't purchase the item to resell it but to use it. The fundamental objective for a retailer when setting a price is to maximize the profit while setting a price that customers will be ready to pay.

Retail Price = Cost of Goods + Markup. Markup = Retail Price – Cost of Goods.

The distributor sells the product for $25 per necklace. The manufacturer sold the product to the distributor for $15. The manufacturer has a suggested retail price of $30 per necklace. The market manager decided to sell the necklace at $29 because they are new to the market and would like to attract some customers.

Cost is typically the expense incurred for making a product or service that is sold by a company. Price is the amount a customer is willing to pay for a product or service. The cost of producing a product has a direct impact on both the price of the product and the profit earned from its sale.

The retail price is what consumers pay for the finished product when it is sold. These customers don't purchase the item to resell it but to use it. The fundamental objective for a retailer when setting a price is to maximize the profit while setting a price that customers will be ready to pay.