This blog introduces the fifth step, of the “10-steps to retail success“, Pricing and Promotions. 10-steps to retail success is a process / methodology I’ve developed for my 1-2-1 mentoring clients. Over the coming weeks / months I’ll be introducing each step with a little more detail.
The importance of having a pricing and promotional strategy
It’s critical for any retailer to have a pricing and promotional strategy that aligns to their positioning and your ideal customer expectations. Pricing is one of the 4 elements of your positioning, so you need to get it right.
Using a Price Ladder
Almost all retailers (possibly with the exception of single price point retailers like 99p Stores) can benefit from having a price ladder. A price ladder is based on a range of similar items that fulfil a similar customer need where each item presents a value proposition of “good, better, best”. Alongside the good-better-best value proposition of course each item has an increased price point, and, the consumer climbs the ladder as they trade up through the items on the range.
Beware of what kind of promotions you run as this can impact your positioning
Promotions are also important to your positioning and the outward impression your brand gives. Be mindful that a retailer with a higher-end positioning offering “big red sale” style of discounting may not only cheapen and devalue their brand but also could confuse the consumer. If you’re positioning doesn’t suit “big red sale” type of promotions and discounting then consider different promotional mechanics that are a better “fit” for your brand positioning and ideal customer group.
Introducing Step 6 of the 10-steps to retail success – Channel and Location
In the next blog about the 10 steps to retail success I’ll be introducing step 6, channel and location. If you can’t wait then don’t forget that I’m also offering the “Be a retail champion by next year” programme, which includes 52 FREE weekly retail tips by email.
To sign up for that visit www.retailchampion.co.uk/retail-tips