Go Back to
www.IndependentRetailer.com MANAGEMENT Pinpoint Pricing
Problems continued from page 107
the competition, and hopefully provide you with a sustainable advantage when it comes time for your customers to make purchasing decisions. If your competitor is charging more for an inferior product or service, you are doing yourself an injus- tice. Girard recommends, “Only if you can produce a product more cheaply and maintain a decent profi t should you con- sider a lower price.” 2) Your storefront is covered
with sale signs. The intention of opening a store was to ser- vice a certain kind of customer.
Sales and promotions boost foot traffi c, but can also al- ter the intended clientele. It’s about fi tting the budget of your target market. As Girard sug- gests, “Look at the purchasing motivation and requirements of your target market, and set prices based on how much the customers in that market are willing to pay.” 3) Your cash on hand takes
a dive at the end of the fi scal year. If you aren’t seeing the signs, the cash you have at the time the books are closed at the end of the fi scal year will tell you a thing or two about your prices. Chances are your costs aren’t getting smaller, so if you have less this year than last
year, your prices may need to be altered. The rule of thumb, according to Girard, is that when your costs go up, your prices should too. 4) Business is attracting bar-
gain hunters. This goes hand in hand with the advice given about too many sale signs and promotions. Your prices are at- tracting customers only looking to pay cheap. Profi t margins will be thin, and any plans you had to market your products will be unsuccessful. Don’t let pricing set the value of your products and your store. ■ This article was adapted from
Entrepreneur.com. Visit
IndependentRetailer.com, For Today’s Business News & Updates.
www.koleimports.com
(800)-874-7766 or (310) 834-0004 24600 Main Street, Carson, CA 90745
Thousands of items in stock. We buy and sell closeouts. New items arriving every day.
108 November 2011
INDEPENDENTRETAILER
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128