Re: "Retail Value"


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Posted by Bill on August 19, 2001 at 10:34:46:

In Reply to: "Retail Value" posted by Stefan Kac on August 19, 2001 at 00:28:11:

A friend who owned a large store, much like Brasswind, once told me he doubled the acquisition cost and then gave a forty per cent discount. To favored customers, he deducted another 10 percent of the remaining 60 percent giving a 46% total discount from twice the acquisition cost. If he turned over stock at a rapid rate, he made money very well; if he got stock in that sat for a year, he was desperate to get it out the door (as was his banker) so there wee some fairly hefty sales cuts. I think this policy is fairly close to what you see in the larger stores today. The mathematics is still there.


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