Category: pricing
Is Black Friday Good for UK Retailers?
We seem all too happy to follow US fads; Halloween and “have a nice day” continue to grate on me. One of our latest adoptions is Black Friday. I set out to look at the impact on retail profits and the issues I found shouted out cautionary notes to all retailers. My starting point was…
Written by
Decoy Pricing to Make More Dough
Don’t put your prices down, use a decoy. Let me explain the idea with a case study from Williams-Sonoma, an American publicly traded consumer retail company that sells kitchenwares and home furnishings. Williams-Sonoma introduced a home bread making machine for $275. Sales were significantly lower than expected. One option was to discontinue the product, another…
Written by
How to sell the benefits of no discounts
This was the message I saw on a software website: Looking for an Academic Discount? With our new simplified pricing, we no longer have a separate academic store. Instead our new, greatly reduced prices are available to all customers. What a lovely positive turn of phrase. They are really saying, “No you can’t have a…
Written by
Poundworld claims take a pounding
What an interesting concept, the manager’s special being 3 to 9 times the price of the rest of the stock in store. When is a pound shop not a pound shop? When it sells items for £8.99, according to the Advertising Standards Authority. Wakefield-based Poundworld Retail has come a cropper with the advertising watchdog after…
Written by
Different Approaches to Pricing
Cost plus pricing is one of the biggest evils within businesses. It appears the safe approach but fails to maximise opportunity. Also, taking this approach, sale prices tend to erode to the level of cost prices. This is unacceptable for most businesses. There are in fact many different solutions to determining a price. Some of…
Written by
7 compelling reasons not to discount
It’s rather nice to get feedback that my web content has proved useful. The article, 7 Compelling Reasons Not To Discount, has been on my main site for a while and I was told the other day that it helped win a debate within a company. It is often too easy to reduce prices but…
Written by
