Merchandising - the Club Shop

Saturday, January 26, 2008
by tutor2u Admin

Set selling prices for merchandise in the club shop to maximise sales and profits

If Manchester United can make a fortune from selling club merchandise, then there’s no reason why you can’t do the same at Duncastle.

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Duncastle’s small Club Shop is open for business and you need to decide the price of the popular Home Strip.  Each kit costs £12 to buy from the supplier, so how much should you sell it for? 

You can price the Home Strip in the range of £10 - £50.  A higher price will improve the gross profit margin, but might put off some customers. You can change this decision at any stage during a season.

Note that if you decide to upgrade the Club Shop, you will be able to manage the prices of a wider range of Duncastle merchandise (see Stadium Development).

You can keep track of the effect of your merchandise pricing decisions by visiting the Merchandise Summary in the Financial Reports section on the desktop in the Chairman’s Office.

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