What drives your pricing?
For many businesses, it’s strictly keystone. Cost times 2 or 3 (or some other number) = retail price.
A friend shopping for his college-aged daughter mentioned two tool kit prices to me. One item has red accents and is priced at $24.99. The other has pink accents and is priced at $14.99. The kits are almost identical, differing only in the box cutter tool housing – and tool handle coloring.
There is one other difference. The red item is not sold in stores. The pink one is not sold online. Not sure about the logic there.
What message does this situation send to the consumer? Is it just a mistake? Does it reflect solely on the vendor cost? Is the higher price intended to drive the customer to buy in the brick and mortar store, where the consumer is likely to find something else to buy?
No matter what the reason…it’s interesting.
Why do I mention this?
Because it reflects on the quality of your internal systems. Systems that are designed to help your customer. Systems that are designed to prevent embarrassment of your business and your staff. Systems designed to help you improve profitability. Systems designed to inform and advise.
A good retail system will identify substitute items when the item you want is out of stock. It might also tell you which store has that item, in the case of a multi-store retailer. It might also suggest similar items at a range of prices and colors – but only those in stock. It might even tell you that the Antarctic Blue Super Sports Wagon won’t be in for another 6 weeks. (props to Jupiter Chevrolet)
What does your system do? Who does it help? Who should it help? How can it be improved?
The items? Right here.
See for yourself at http://www.target.com/p/apollo-39-pc-household-tool-kit/-/A-10230581