View Full Version : Price points
alexlowe
19th July 2006, 17:28
Does anybody have any experience/knowledge of retail price points?
I have a product that i think should have moved faster the past couple of weeks...
i'm thinking of dropping the price from £899 to £849, but i heard a theory that after the first few hundred pounds price points are at £100 intervals,
e.g. people decide they want to spend/can afford £400 or £500 or £600 etc
If this is true then dropping down to £849 won't work and i'll need to go to £799 which i dont want to do just yet.
Any opinions/advice appreciated...
You can't do this in a vacuum - what are your major competitors selling at?
alexlowe
20th July 2006, 13:05
Well, actually i'm yet to find any direct, like for like, competition but your right i should look at comparable products. Thanks.
alejandro
20th July 2006, 14:23
hi
we have a fact sheet available on this if you are interested. if so drop me a pm or email me (you can find the address through www.hollexretail.co.uk (http://www.hollexretail.co.uk)) and i will email it over for you.
a
alexlowe
20th July 2006, 18:41
Thanks alejandro, have pm'd you.
alejandro
21st July 2006, 08:53
email sent alex. let me know if you need any more help.
a. www.hollexretail.co.uk (http://www.hollexretail.co.uk)
Profit Generation Systems
22nd July 2006, 10:54
Hi
Like a previous respondent has said - you cannot answer this question without some knowledge of the marketplace and competition. Is the product not selling because of competition or is it not selling because it is not wanted or is it not selling because customers are unaware of it? You tactics will vary depending on the situation.
Selling is about creating a need and this is what retailers need to do - whatever the product is do not sell the features - sell the benefits it will bring to the buyer. You are providing them a solution to a need.
Other ways of improving sales would be to offer some sort of guarantee over and above the norm. This might sound risky however if the product is any good then you are unlikely to need to honour the guarantee however it will be something that would help a buyers decision process.
Also look at other promotional methods such as cross selling and back end sales - this is better for your business than straight discounting which hurts the bottom line.
Joint venture initiatives can also help sales where you can link in with another non-competitive retailer to offer a mutually beneficial combined deal.
Best of luck
profitgenerationsystems.com