'Retail Minus' Pricing Scheme


Senior Member
Hello, folks.
I am unable to figure out or draw the whole meaning of "retial minus pricing scheme".What does it mean within the following text:

In the fixed-line business, the regulatory reductions to Reference Interconnect Offer (RIO), retail fixed-to-mobile prices (related to decrease of mobile termination rates) and the obligation for TP to provide fixed voice and broadband wholesale services at a ‘retail minus’ pricing scheme resulting in price below cost had an inevitable pressure on our profitability profile. Despite these setbacks, we kept a grip on our leading market position, with share of traffic down by only 0.4 percentage points year on year. http://www.investis.com/tp/annualreport2007/presidents_letter.html

Many thanks
  • ashkekechara

    New Member
    English - United States
    Imagine the person also added in a blank space here. So it would say "retail minus ______" pricing scheme. What they are saying is that their wholesale pricing is a certain discount (either in percentage or dollars) from the retail price ("I will sell you this phone for retail minus 30%"). Many companies sell wholesale with a "cost plus _____" pricing scheme instead, where they figure out the cost of producing an item, and then tack on a certain percentage for profit.

    Hope that helps - I realize this is an old question and you may not even need to know anymore!
    < Previous | Next >