In which method is a percentage subtracted from the retail price of merchandise?

The percentage off retail method is a straightforward pricing strategy whereby a specific percentage is deducted from the retail price of merchandise to arrive at the selling price. This method is commonly used in retail settings to encourage sales and clear inventory, as it allows customers to see the discount clearly.

By subtracting a percentage from the retail price, businesses can communicate savings to customers effectively, which can stimulate purchases and enhance customer satisfaction. This approach is particularly appealing during sales events or promotional seasons, where the visibility of the discount can motivate buyers.

In contrast, other methods, like the Cost Plus method, involve calculating the selling price based on the cost of the item plus a set markup rather than subtracting a percentage from the retail price. The Value Oriented method focuses on perceived value rather than simply applying a straightforward discount. Lastly, the Lump Sum method typically involves a fixed total price for a service or package deal, not related to manipulating retail prices through percentage discounts.

Thus, the percentage off retail method stands out for its clarity in communicating discounts directly related to retail pricing.