How to increase your profits

Ignore sales promotions, put your prices up and most customers probably don’t care…assuming they notice.

The “big four” of supermarkets, Asda, Tesco, Morrisons and Sainsbury’s, have increased the number of £1 promotional price tags 150% over the past year. This compared with a 6% increase in their general promotions, according to a report compiled on behalf of industry magazine the Grocer.

Source: BBC Magazine

The above article is an extract from an article about the rounding up of prices from 99p to £1. Do the maths: what might that equate to in increased annual profits? Simple and effective; this is a great example of pricing being used correctly in the marketing mix.

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