MKT 100 Study Guide - Final Guide: Small Appliance, Rolling-Element Bearing, Biathlon World Cup

• School: McMaster University
• Department: Marketing
• Course: MKT 100
• Professor: Daryl D' Souza

Document Summary

Worksheet: metric 6 pricing wholesale to retail: you are a manufacturer of widgets that sells your products to a wholesaler who in turn sells directly to retailers. You have developed a new widget and you know that your competition"s product retails for in hardware stores. You know yours is slightly better, and are pretty sure your product could sell for . We know rsp - , rmgn 33. 3%, wmgn 25% Retailer selling price ($) = wholesale selling price ($) Wholesale selling price ($) = retail selling price * [1 - retail margin (%)] Wholesale selling price ($) = manufacturer selling price ($) Manufacturer selling price = wholesale selling price * [1 - wholesale margin] = . 50: as a small appliance manufacturer, your cost to manufacture and package your coffee maker is /unit. You want this to be a cash cow, so you decide to sell the coffee maker to your wholesaler for /unit.