MANAGEMENT

Detailed explanation-1: -In mark up pricing, a retailer sets the prices of the merchandise by adding per unit merchandise costs, retail store operating expenses and determined profit. The gap between merchandise price and selling price is the mark up.

Detailed explanation-2: -Hence the most common method used for pricing is cost plus or full cost pricing.

Detailed explanation-3: -When a customer has an urgent need that your product or service can address, they may be willing to pay a higher price than when their need is less urgent. Similarly, an actual or perceived shortage in supply could make them more willing to pay a higher price than when there’s a surplus.