COURSE OVERVIEW:
Welcome to the Retail Pricing Strategies course. This program will equip you with the decision-making frameworks, analytical tools, demand-management techniques, and ethical considerations required to set effective retail prices in competitive markets. You will explore how pricing influences profitability, customer perception, sales volume, and brand positioning. This course also examines pricing models, markup calculations, break-even analysis, markdown optimisation, and the use of technology and competitive data to support strategic pricing decisions.
This course begins by examining the importance of pricing decisions and the major pricing strategies used in retail, including the high/low pricing strategy and the everyday low pricing (EDLP) strategy. You will explore the advantages of the high/low strategy, the advantages of the EDLP approach, and the key considerations involved in setting retail prices. This section also explains how to measure customer price sensitivity, the impact of intense price competition, and how to collect and use competitive price data to guide pricing decisions. You will explore how to price services, how to match supply and demand, how to determine service quality, and how to set prices based on costs. This section also introduces the concepts of retail price and markup, the difference between initial markup and maintained markup, and the relationship between initial and maintained markup percentages.
The next learning area focuses on analytical tools and systems used to optimise retail pricing. You will explore pricing optimisation software and how it supports data-driven pricing decisions. This section explains the profit impact of setting a retail price, the use of break-even analysis to establish pricing thresholds, and how to calculate break-even for a new product or for break-even sales. You will examine why retailers take markdowns, how to optimise markdown decisions through timing and forecasting, how to reduce the amount of markdowns through inventory and demand planning, and how to liquidate markdown merchandise effectively while protecting margins.
A further learning area examines pricing techniques used to increase sales and profits. You will explore the individualised variable pricing technique, the self-selected variable pricing technique, leader pricing, price lining, and odd pricing. This section also outlines guidelines for making price-ending decisions, how psychological cues influence buyer behaviour, and how retailers use strategic price structuring to attract target segments. You will explore how to use the internet to make pricing decisions, including how digital tools assist with price comparisons, dynamic adjustments, and multichannel synchronisation.
Another learning area explores illegal and unethical pricing strategies that retailers must avoid. You will examine predatory pricing, resale price maintenance, horizontal price fixing, bait-and-switch tactics, scanned versus posted price discrepancies, and deceptive reference pricing. This section emphasises legal compliance, consumer protection requirements, and the reputational risks of unethical pricing conduct.
The final learning area highlights how retailers integrate pricing strategy with brand positioning, customer experience, competitive analysis, and financial goals. You will explore how pricing supports value propositions, how retailers respond to market shifts, and how data and technology drive smarter pricing decisions in an increasingly digital retail environment.
By the end of this course you will be able to evaluate pricing strategies, measure price sensitivity, calculate markup and break-even levels, optimise markdown processes, apply pricing techniques effectively, avoid unethical pricing practices, and make informed pricing decisions that maximise profitability while maintaining customer trust.
LEARNING OUTCOMES:
By the end of this course, you will be able to understand:
- The importance of pricing decisions
- The high/low pricing strategy
- The everyday low pricing strategy
- The advantages of the high/low pricing strategy
- The advantages of the EDLP approach
- The considerations in setting retail prices?
- How to measure customer price sensitivity?
- The impact of intense price competition
- How to collect and use competitive price data?
- How to price services?
- How to match supply and demand?
- How to determine service quality?
- How to set prices based on costs?
- Retail price and markup
- The difference between initial markup and maintained markup
- The relationship between the initial and maintained markup percentages
- The pricing optimisation software
- The profit impact of setting a retail price
- The use of break-even analysis to set prices
- How to calculate break-even for a new product ?
- How to calculate break-even sales?
- Why retailers take markdowns?
- How to optimise markdown decisions?
- How to reduce the amount of markdowns?
- How to liquidate markdown merchandise?
- The techniques for increasing sales and profits
- The individualised variable pricing technique
- The self-selected variable pricing technique
- The leader pricing technique
- The price lining technique
- The odd pricing technique
- The guidelines for making price-ending decisions
- How to use the internet to make pricing decisions?
- The illegal and unethical pricing strategies
- The predatory pricing strategy
- The resale price maintenance strategy
- The horizontal price fixing strategy
- The bait-and-switch tactics
- The scanned versus posted prices strategy
- The deceptive reference prices strategy
COURSE DURATION:
The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.
ASSESSMENT:
A simple 10-question true or false quiz with Unlimited Submission Attempts.
CERTIFICATION:
Upon course completion, you will receive a customised digital โCertificate of Completionโ.