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rs <br />'I store; <br />it's a cash and Carry wholesale membership warehouse. <br />RETAIL STORES VS. PRICE SAVERS <br />Prices that retail charge for products must include <br />cost of goods plus overtwAd expenses: <br />• FANCY STORE FRILLS <br />add atmosphere: they cost <br />plush carpeting <br />special lighting effects <br />custom fixtures <br />piped -in music <br />expensive store locations <br />• HIDDEN CHARGES <br />require additional personnel and separate <br />bookkeeping records: they cost - <br />charge cards <br />charge accounts <br />lay -a -ways <br />shoplifting <br />bad checks <br />deliveries <br />• DELUXE PACKAGING <br />increases SKU's (stock keeping units) and <br />handling• it costs: <br />point -of -purchase ma►enals <br />special displays <br />gift and seasonal packages <br />special offeu <br />multiple sizes of the same product <br />• PROMOTIONS <br />need special staff, advertising and marketing <br />matenals as well as separate bookkeeping/tracking <br />records they all cost <br />markdowns and clearances <br />games and gimmicks <br />-'loss leaders** (usually with limi(s) <br />sales and the accompanvrng ramcheck% <br />HIGH OVERHFAD = <br />HIGH MARGINS AND HIGH PRICES <br />Prices that Price Savers Membership Warehouse charges (or <br />products include cost of goods plus k)v overhead expenses: <br />• NO FANCY STORE FRILLS <br />lust a clean, neat 100.000 sq. ft. wholesale <br />warehouse with cement floors, palletized <br />merchandise on steel racking, cost-efficient heating <br />and lighting supplemented with skylights. <br />• NO HIDDEN CHARGES <br />just cash and carry wholesale price savings on top <br />quality name brands. <br />• NO DELUXE PACKAGING <br />just onginal shipping cases or cartons for most <br />merchandise: many items are institutional packs <br />• NO PROMOTIONS <br />no sales, thetefore no ratnchecks just everyday <br />low wholesak, prices on top quality nanie brands. <br />every single day <br />LOW OVERHEAD = LOW MARGINS <br />AND GREAT PRICE SAVINGS <br />