Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 2nd Term
Week: 7
Age: 15 years
Duration: 45 minutes
Subject: Store Management
Curriculum Theme: Store Management
Previous Lesson: Introduction to Pricing.
Topic: Pricing Methods
Subject Matter: Mark up pricing, mark down pricing, target return pricing, variable pricing, benefits and problems of pricing methods, meaning of organizational policy, characteristics of policies, policy decisions on employment, customer service and code of conduct

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define mark up pricing, mark down pricing, target return pricing and variable pricing.
State benefits of pricing methods.
State problems of pricing methods.
Define organizational policy.
List characteristics of policies.
Explain policy decisions on employment, customer service and code of conduct.

Affective Domain:

Show a positive attitude towards fair pricing and honest store practices.
Value good store policies that protect staff and customers.

Psychomotor Domain:

Calculate a selling price using mark up and mark down from given examples.
Classify given pricing situations under mark up, mark down, target return or variable pricing.

Participate in group discussion on examples of pricing and store policies in the locality.
Work with classmates to draft simple store policy statements for customer service and code of conduct.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum
State Unified Scheme of Work
Store Management for Senior Secondary Schools (recommended textbook)
Markup: Meaning and Examples (Investopedia)
Markdown: Meaning and Examples (Investopedia)
Policy: Meaning and Use in Organizations (Britannica)

Instructional Materials

The teacher will teach this lesson with the aid of:

Charts showing pricing methods
Sample price tags and price list
Simple calculation examples on cardboard paper
Charts showing characteristics of policies
Sample code of conduct poster
Whiteboard and marker

Rationale for the Lesson

This lesson helps pupils understand how stores set prices and adjust them to meet sales and profit goals. It also helps pupils understand how store policies guide staff behaviour and improve customer service.

Prerequisite/Previous Knowledge

Pupils have observed that prices of goods can increase or reduce in markets and stores and have seen simple rules in shops such as “no returns” or “keep your receipt.”

Lesson Content/Board Summary

Pricing Methods and Organizational Policy

Mark Up Pricing

Mark up pricing is a method of fixing the selling price by adding a profit margin to the cost price.

The following are key points of mark up pricing:

Selling Price = Cost Price + Mark Up.
Mark up may be a fixed amount or a percentage of cost.
Used to ensure profit on each item sold.

Mark Down Pricing

Mark down pricing is the reduction of the original selling price of goods to encourage quick sales.

The following are key points of mark down pricing:

Applied during clearance sales, damaged goods sales, or end-of-season sales.
Helps to reduce slow-moving stock.
New Selling Price = Original Price − Mark Down.

Target Return Pricing

Target return pricing is a method of setting price to achieve a planned amount of profit (return) within a given period.

The following are key points of target return pricing:

Price is set to meet a specified profit target.
Cost, expected sales volume, and required return are considered.
Used when a business has a clear profit goal for a product or period.

Variable Pricing

Variable pricing is a method where different prices are charged for the same product under different conditions.

The following are key points of variable pricing:

Prices may change due to demand, time, location, or customer category.
Common in transport fares, hotel rooms, and some retail promotions.
Requires clear rules to avoid customer complaints.

Benefits and Problems of Pricing Methods

The following are benefits of pricing methods:

Helps the store plan for profit and sales targets.
Helps control stock movement through price adjustments.
Helps the store compete by matching or improving price levels.
Helps to attract customers through discounts and promotions.

The following are problems of pricing methods:

Wrong pricing may lead to low sales or low profit.
Frequent price changes can confuse customers.
Too much mark down can reduce profit and lower product value.
Variable pricing can cause complaints if customers feel treated unfairly.

Meaning of Organizational Policy

Organizational policy is a set of rules and guidelines that direct decisions and behaviour in an organization or store.

Characteristics of Policies

The following are characteristics of policies:

Policies provide direction for actions and decisions.
Policies are written or clearly stated for staff to follow.
Policies are consistent and apply to similar situations.
Policies support the goals of the organization.
Policies can be reviewed and updated when needed.

Policy Decisions in a Store

The following are policy decisions in a store:

Employment policy: recruitment rules, work hours, wages, promotion, and discipline.
Customer service policy: greeting customers, handling complaints, refunds/returns rules, and service standards.
Code of conduct policy: honesty, dress code, punctuality, handling cash, and behaviour towards customers and colleagues.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher displays sample price tags and a simple discount label, then asks pupils to identify why a shop may increase or reduce price and how rules in shops guide staff behaviour.
Pupils’ Activity: Pupils respond with examples of price increase, discount sales, and common shop rules they have seen.
Learning Point: Pricing methods affect selling price, and policies guide store decisions and behaviour.

Step 2: Explanation of Pricing Methods

Time: 10 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains mark up, mark down, target return and variable pricing and writes key definitions and formulas on the board.
Pupils’ Activity: Pupils take notes and copy the definitions and formulas.
Learning Point: Different pricing methods are used for different store goals and situations.

Step 3: Demonstration with Simple Examples

Time: 7 minutes
Teaching Skill: Demonstration
Teacher’s Activity: The teacher demonstrates mark up and mark down calculations using sample items and price tags and guides pupils through one example each.
Pupils’ Activity: Pupils solve short examples and write their answers in classwork.

Learning Point: Mark up increases price for profit while mark down reduces price to encourage sales.

Step 4: Benefits and Problems of Pricing Methods

Time: 6 minutes
Teaching Skill: Discussion
Teacher’s Activity: The teacher guides pupils to list benefits and problems of the pricing methods and corrects responses for accuracy.
Pupils’ Activity: Pupils contribute points and copy the final list.
Learning Point: Pricing methods have advantages and challenges that affect profit and customer response.

Step 5: Organizational Policy and Characteristics

Time: 7 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines organizational policy and explains characteristics using the policy chart and a sample code of conduct poster.
Pupils’ Activity: Pupils take notes and identify two characteristics from the chart.
Learning Point: Policies provide direction and consistency in store operations.

Step 6: Policy Decisions in a Store

Time: 5 minutes
Teaching Skill: Question and Answer
Teacher’s Activity: The teacher explains policy decisions on employment, customer service, and code of conduct, then asks pupils to give examples of each in a store setting.
Pupils’ Activity: Pupils give examples and suggest simple policy statements for a store.
Learning Point: Store policies guide staff management, customer treatment, and proper behaviour.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define mark up pricing.
State two benefits and two problems of pricing methods.
Define organizational policy and list three characteristics of policies.
State one policy decision each on employment, customer service and code of conduct.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summary
Teacher’s Activity: The teacher summarizes pricing methods and organizational policy, then gives an assignment for pupils to write four pricing examples from local markets and draft three short store policy statements for customer service.
Pupils’ Activity: Pupils copy the summary and note the assignment.
Learning Point: Pricing methods and policies help stores achieve goals and maintain good operations.

Lesson Keywords

Mark up – Amount added to cost price to get selling price.
Mark down – Reduction of the original selling price to encourage sales.
Target return pricing – Setting price to achieve a planned profit within a period.
Variable pricing – Charging different prices for the same product under different conditions.
Organizational policy – Rules and guidelines that direct decisions and behaviour in a store.
Code of conduct – Rules that guide staff behaviour and ethics in the workplace.

Differentiation

Fast learners solve additional pricing scenarios and draft a simple policy outline for a small store, while learners who need support use guided examples to define each pricing method and list policy characteristics from the charts.

Note for teachers using this lesson plan

Use familiar goods and realistic prices from the local market to make pricing methods clear. Emphasize short definitions and clear lists for exam readiness, and use the code of conduct poster to connect policies to daily store behaviour.