i have gotten good deals from big al time to time -- a fuzzy dwaft lion for $20
and i think nobody can beat that price.
although i work in the retail industry but i don't agree with fluctuating retail prices (ie keep markup and net profit constant)
it makes the consumers confused.
and my job as a bookkeeper harder
for example, back in nov, the price for a long nose butterfly: 4 in one tank at $30/each and 2 in another at $40/each (similiar in size and health). the reason for the price difference was landed cost. why can't big al mgmt average the price? ($30X4+$40X2)/6=$33.33
that way gross profit stay constant.
a better business practice / customer relation is to absorb the short term unexpected cost (ie must use AirCanada cargo instead of Westjet due to delay and animal health) and keep the retail price constant (for popular items such as clowns) for the time being.
the increase in shipping cost can be factor in the cost of goods sold of the next fiscal year. better yet, find another carrier.
fluctuating retail price=constant markup and constant gross profit
this make budgeting a lot easier but it make selling a lot harder
for example:
1 box of 50 clown fish at $4.00/each = $200
shipping/box/handling/custom/cites = $400 <-- can increase 50%-100%
landed cost for 1 box of 50 clowns = $600 to $1000
let's say we want a markup of 40% = $400
selling price for the box of 50 clowns =$1000 to $1400
if all 50 survived then each clown is $20 <--very unlikely
if only 25 survived then each clown is $40
if only 12 survived then each clown is $83
thus the price of clowns fluctuates, it puts the sale staff in a very tough situation to explain to the customers.
fluctuating retail price is a double edged sword:
- i am passing the saving to the consumers
and
- i make the consumer pay for unexpected cost.
just my 2 cents
Tak