1. What were the two big “take aways” from Managing Markups assessment?
The two big take aways from the Managing Markups assessment for me were how business come up with pricing plans and how I should be more specific and clear in some of my explanations. I gained a better understanding of . I also realized that sometimes in my explanations of my findings, I talk about things that are clear to me but might not be clear to the reader.
2. How have you become a more educated investor? Be specific about how you would invest your money.
I now know that it is better to invest in a company with better pricing plans and more profit. A good pricing plan would be finding out how to maximize profit, and having a good backup plan in times of a financial crisis, such as, deciding whether selling the product at cost or maintaining the markup (with a decrease in demand) would be more efficient. If I don’t invest in a company with good pricing plans, then I wouldn’t be able to earn money from the company I invest in.
3. Describe, with examples, how you improved some of your math skills.
A math skill I improved through this assessment is being faster at creating formulas. I have improved my skills in creating formulas because in excel, it’s easiest to create a formula that works for everything in the table instead of putting in all the numbers separately. For example, a formula I had to create to find out what the new retail price was after an additional markup was 5000+(5000*new retail price). This formula is different from what I would usually use (new retail price*1.85) because I had to make sure it would work for all the other cells when I dragged it down.
4. Why doesn’t a 20% discount followed by a 20% markup get you back to where you a started?
A 20% discount followed by a 20% markup wouldn’t get you back to where you started because the number you discount from is different from the number you markup from, so the 20% wouldn’t be the same.
5. How do companies make profit?
Companies make profit by making their retail price higher than the wholesale price. They have to find the best way to maximize their monthly revenue and minimize their costs because a monthly revenue subtracted by the costs is a company’s profits. Companies also have to consider a reasonable retail price because if it is too expensive then customers might not want to buy it.
6. Is it possible for everyone to win the marketplace?
I don’t think it is possible for everyone to win the marketplace because when companies are competing against each other with different products, the majority of customers may favourite a specific product, therefore allowing that company to profit and the other companies to not profit as much or have loss.