Retailer Profitability Model - Price Per Item
Price per item is simply the average price per item based upon the number of items in a shopper’s basket. For example, if they buy five items and spend $20, the average price per item is $4. All retailers have very specific pricing strategies and profit margin goals that are based upon their cost of goods, overhead, and operating expenses. Retailers are always looking for ways to increase their average price per item. This course teaches about some specific tactics that retailers employ to get their shoppers to spend more money.
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