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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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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.

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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 ...

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