Margin Magic: Four Steps to Building Greater Profit

Conversely, there are times when a lower margin percentage will increase item demand to a point where more margin dollars will be delivered on the space than if a higher margin percentage were used. This is especially true on trendy or competitive items that can be found from multiple merchants.

Remember, setting retail prices is both an art and a science, and as such, should be carefully considered. Treat items differently based on factors such as price point range, size of catalog presentation, return rate and shipping costs.