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COMPENSATING FOR RISING FREIGHT COSTS

You all know that your freight costs are increasing, it seems almost daily. As a small business owner you can not just absorb those costs - - they must be passed on to the consumer. Even large companies are passing these costs on to the consumer. As a consumer, I am not happy about it but that is just a fact of life and something we all have to live with in these troubled times.

It would be too difficult and time-consuming to try to calculate the freight cost on each item so I am suggesting you choose an easy method to use. Either increase your Initial Markup by a half to one percentage points or add $0.50 or $1.00 to the retail of each item after calculating the retail using your Initial Markup % goal.

It really does not matter which method you choose. However, you must address this situation or watch your profits disappear a little at a time.

The Retail Management Advisors is a BBB Accredited Management Consultant in Allen, TX
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