What should someone pay? How much did it really cost to make? Did you ever wonder how much the designer really makes?
All of these are valid questions-ones you can calculate! That is right, applying fundamental math skills in some easy to use formulas and forms, you can calculate numbers so you have the best information on hand to make the right business decisions. As a merchant you learn that getting the right merchandise for the right price at the right time is the heart of the business. Your goal is to buy goods that will earn the best profits. Vendors don’t hang out signs saying “let’s make a deal,” because they too need to earn profits. But, both buyers and vendors know there will be a middle ground where everyone comes out a winner. You get to that middle ground by negotiating with solid facts. From there you need to price and promote products and services that will attract customers and generate sales to meet the financial goals of the business.
Learn more about the basic math skills to help you build purchase order, price and successfully promote product in Section Two of Math for Merchandising Retailer’s Handbook.