RETAILUNIT Consumer Math Unit 5. INTRODUCTION BRAINSTORM Write all possible things you know about...

RETAIL UNIT Consumer Math Unit 5

INTRODUCTION

BRAINSTORM

Write all possible things you know about retail (businesses).

- Money

- Terminology

- Workers

WORKERS IN RETAIL

How many have worked in retail?Give your position and where you worked.Brief description and what you did.

Advantages or Disadvantages?

TYPES OF RETAIL

What are the different types of retail?

What are each of these types of retail known for?

VOCABULARY

TERMS TO KNOW

Refer to handout of vocabulary.

MARKUPS

MARKUPS

- What a retailer does to profit from the sale of an item.

-Varies from store to store; can range from 10- 150%

HOW IT WORKS

-Retailer purchases product for a given value, say $100.

-In order to make a profit on the item they need to sell it for more than $100.

-Retailers mark-up the price in order to make a profit.

-Assume a 50% markup; then 50% of $100 = $50.

-Retailer now sells the item for $150 and makes a $50 profit.

WHY?

Brainstorm why retailers have markups on their merchandise.

CALCULATING MARKUPS

A watch cost $14 with a markup of 8%. What is the retail price of the watch? How much profit is the company making?

CALCULATING MARKUPS

The retail price of a set of new tires is $650, with a 15% markup. What is the original cost of goods? How much profit is the tire company making?

CALCULATIONS

You are given a markups calculations worksheet. You have the remainder of the class period to work on and complete this with a partner if you choose. This will be due and graded tomorrow.

If you have questions, please ask!

MARK DOWNS

MARKDOWNS

In order for a retailer to sell all inventory without loosing all the profit, they sell items at costs lower than retail.

- Markdowns vary from 1%- 99%. These are ‘sales’ retail stores have.

HOW IT WORKS

Stores discount their inventory to make it more appealing for a customer to buy.

EX: A $100 sweater is marked down 25%. $100* 25% = $25

The sweater now only costs $75.

WHY?

Brainstorm ideas why companies have ‘sales’ or ‘clearance’ items.

Do retailers ever loose money on ‘sale’ or ‘clearance’ items?

ASSIGNMENT

You are going to research 10 different items that are on clearance (use internet based searches or the ads provided).

You are going to find the percentage markdown on a given item. Make sure the retail value is listed.

Worth 20 points.

SALES TAX

SALES TAX

What is sales tax?

Why do we need sales tax?

RESEARCH ITEMS

What items are do you pay sales tax on?

What items do you not pay sales tax on?