Pricing and BudgetingLaajuus (4 cr)

Objective

After completing the course, students will be able to
• define the impact of distribution channel selection on product pricing
• understand the principles of calculating wholesale and retail prices, considering profitability requirements
• understand the basics of creating sales and purchase budgets
• explain the connection between budgets and assortment planning
• explain the impact of assortment breadth, product volumes, and margins on profitability.

Content

• Product pricing considering the characteristics of different distribution channels
• Creating sales and purchase budgets
• Linking sales and margin targets to assortment planning
• The impact of product volumes on the profitability of products and assortments, as well as responsible sourcing

Qualifications

Competences corresponding to the goals of the following course: Assortment Planning in Fashion Business

Assessment criteria, satisfactory (1)

Students recognise the impact of distribution channel selection on product pricing, but their understanding is superficial. They can describe the basic principles of calculating wholesale and retail prices, but applications are general. Students understand the basic principles of creating sales and purchase budgets, but explanations may be imprecise. They can connect budgets and assortment planning at a general level. Students recognise the impact of assortment breadth, product volumes, and margins on profitability, but the analysis remains general. They can apply their knowledge to simple pricing and budgeting situations, but solutions may contain errors or deficiencies.

Assessment criteria, good (3)

Students can explain the impact of distribution channel selection on product pricing. They can partially apply the principles of calculating wholesale and retail prices. Students can create sales and purchase budgets according to basic principles and explain their practical significance. They can explain the connection between budgets and assortment planning. Students can analyse the impact of assortment breadth, product volumes, and margins on profitability with concrete examples. They can apply their knowledge to pricing and budgeting situations.

Assessment criteria, excellent (5)

Students can analyse the impact of distribution channel selection on product pricing and present justified conclusions. They can apply the principles of calculating wholesale and retail prices. Students can create detailed sales and purchase budgets and evaluate their impact on business planning and decision-making. They understand the connection between budgets and assortment planning and can suggest development measures for their integration. Students can evaluate and anticipate the impact of assortment breadth, product volumes, and margins on profitability and present solutions to improve profitability. They can apply their knowledge to pricing and budgeting situations and provide justified solutions. Performances demonstrate a broad understanding.

Assessment criteria, approved/failed

Students recognise the impact of distribution channel selection on product pricing, but their understanding is superficial. They can describe the basic principles of calculating wholesale and retail prices, but applications are general. Students understand the basic principles of creating sales and purchase budgets, but explanations may be imprecise. They can connect budgets and assortment planning at a general level. Students recognise the impact of assortment breadth, product volumes, and margins on profitability, but the analysis remains general. They can apply their knowledge to simple pricing and budgeting situations, but solutions may contain errors or deficiencies.