Final answer:
Todd should set pricing that covers costs, achieves a sustained markup, and balances competitiveness with profitability, while reassuring customers about product quality to ensure a profitable toy store season.
Step-by-step explanation:
The correct answer is that to ensure a profitable season, Todd should strategically set his pricing to maintain a balance between covering costs, achieving a maintained markup, and offering competitive prices to attract customers.
Given that he operates a toy store and needs to price a new line of action figures, Todd should consider factors such as the cost of goods sold, competitor pricing, perceived customer value, and market demand.
It's also vital for Todd to provide clear information about the quality and unique features of his action figures to reassure customers and justify his prices, especially if they differ from competitors due to a maintained markup for profitability.
Todd should additionally monitor sales and adjust pricing if necessary throughout the season to remain competitive while still achieving his profit goals.
This approach aligns with the concept that prices are a reflection of information and should be set to uphold a trustworthy reputation, as demonstrated in the reference material provided.
To assure a profitable season, Todd should make sure that he maintains his markup when pricing the new line of action figures for his toy store.
Maintaining the markup means that Todd should set the selling price of the action figures high enough to cover his costs and generate a profit.
By carefully considering the costs associated with purchasing and selling the action figures, including the cost of acquiring the figures from the supplier, any additional expenses such as shipping or storage, and overhead costs, Todd can calculate the appropriate markup percentage to apply to the cost price.
This markup will guarantee that Todd makes a profit when selling the action figures.