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Mark-up in Department Stores vs. Discount Stores.

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Why do many department stores seek a markup of about 30% when some discount houses operate on a 20% markup? Identify and explain at least three reasons

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Below are several reasons - hope these help!

- Department stores can command higher prices based on the "extras" they provide: location, decor, marketing, catalogs, nicer bags, etc
- Department stores mark ...

Solution Summary

This solution discusses why department stores mark up goods by 30 percent compared to discount houses who mark up goods only 20 percent. It explains multiple reasons.