This is the last part of a 4 part series I’m covering on Applying Marketing 4Ps in Retail environment. If you’ve missed out the other 3 parts, fret not, you can always click on the link and review the 1st part of Applying Marketing 4Ps in Retail, the 2nd part of Applying Marketing 4Ps in Retail and the 3rd part of Applying Marketing 4Ps in Retail
In the pricing strategy in retail environment, there are a few points that you need to take note of. Some of the points stated may come across as “common sense” but many companies fail to implement them as they are too focus on implementing one of the points hence forgoing the rest of the other points. It is important to weigh all the points as equally important as the other. Here are some of the pointers for you to consider
Product value here talks about your product cost. Every business wants to earn money and not make losses. In ensuring your product value, with your minimal profit margin in mind, this would cast the price threshold without hurting your profits
While you can put any percentage of profit margin in mind, beware of competitor’s pricing as well. Knowing your product stand from the earlier parts of the marketing 4Ps, you now know if your the price that you are offering is as per the objective that you have set earlier. Ie If you are targeting premium consumers then pricing your product above the competitors would give the impression that you are a premium item
Are your consumers price sensitive? Most of the time if you are selling basic necessities items such as rice, oil, detergent etc, consumers are likely to be price sensitive. If your consumers are price sensitive, even a difference of RM0.10 would sometimes have a significant impact on consumer’s consideration
It is good to build a discount levels into your pricing as well as when it comes to promotion, you will be clear what are the discount levels that you can afford to give. Most retailers and consumers expect some form of price promotion hence remember to include that in
Are there anymore pricing considerations that you would like to share apart from what I’ve mentioned above?