According to the 70/30 rule, what percentage of merchandise should be priced below expansive?

The 70/30 rule in the context of pricing strategy typically suggests that 70% of a funeral home’s merchandise should be priced below what is considered a higher or expansive price point, often referred to as "expensive." This rule helps to provide a range of options that appeal to a broad customer base while still allowing for higher ticket items.

In terms of appropriate pricing structures, the concept is that a majority of the available merchandise should be accessible and attractively priced for clients who may be more budget-conscious. The remaining 30% can be reserved for more upscale, costly items that provide the opportunity for higher margins. By adhering to this rule, funeral service providers can create a balanced offering, ensuring they meet the financial needs and preferences of a diverse clientele.

Therefore, stating that 30% of merchandise is priced below expansive aligns with this pricing philosophy, as it creates a tiered structure that supports both affordability and premium offerings. It’s an effective strategy for funeral homes aiming to cater to various financial situations while optimizing their sales.