Powerful Retail Price Strategies for Christmas 2009 and Beyond
Posted: Wednesday, November 18, 2009
by Ron Pawlowski
The Retail Institute
Retailers Must Get Creative With Pricing To Entice Value Driven Consumers
There are less than six weeks to Christmas, even though it doesn't feel like it! There's still a window of opportunity to increase sales for the Holiday Season and into 2010. Retailers who understand how consumers have adopted price and value as their top buying decision criteria must brand themselves accordingly. Existing price driven retailers such as Wal Mart and Costco have proven that elements such as convenience, selection and ambiance have gone to the bottom of the list of priorities. Secondary to price, consumers still expect good customer service when they shop for both needs-based or wants-based items.
1) Launch a Pre-Christmas sale. Consumers traditionally expect sales to start after the holidays. A Pre-Holiday sale on selected giftware can appeal to customers who are under pressure to fill their gift lists.
2) Permanently lower prices on selected items and aggressively market your "New Lower Prices Throughout The Store" campaign. Many established retailers have discovered this new tactic. Customers often see this strategy as a more powerful brand position than the typical transient sale.
3) Offer package deals on selected products. Bundle a wardrobe package if you run a clothing store. Bundle compatible tools like a compressor and their accessories if you are in the hardware business. Electronics can be bundled in the same manner, like virtually every type of retail operation. Package deals offer great savings for customers and induce them to buy all they need in your store without the risk of shopping at your competition.
4) Offer a percentage discount on sales over $100. Customers will appreciate an instant discount at cash on larger purchases and motivate them to spend more in your store.
5) Give a percentage discount on multiple item purchases. Like a discount on a minimum dollar amount, this tactic also motivates customers to conduct "one stop shopping" and buy more in your store. You can typically offer multiple item purchases on items over $30 for example.
6) Buy two and get on free promotions. These price promotions work well with lower priced staple items that have higher margins. Accessories such as ties in a clothing store, small tools or even shoes can work well with this type of promotion and retain profits even when giving away one item. Promotions like this should be outlined in detail in your store using prominent signs. Typically the free item is specified as the lowest priced item of the three.
7) Offer a Discount Coupon. Entice customers to return for a subsequent shopping visit with a discount coupon of either a direct cash value such as $10, or a percentage discount. You can create a coupon that either expires before Christmas to induce customers to return prior to this date and shop again, or in January to build traffic after the holidays.
8) Offer a Discount for New Customers. If you have a loyalty program, entice customers to sign up with a discount for their first purchase in your store. This has become a common strategy to build clients for cell phone, cable and other communications companies that you can also adopt.
Take Action Today:
1) Review these powerful pricing strategies and determine which ones are compatible with your type of business and launch a campaign NOW to capitalize on the holiday season.
2) Plan which campaigns you'll launch after the holidays to increase traffic and sales during the slower post-Christmas months.
3) Discuss with your employees these and other methods you can use to brand your store as a strong price and value driven retailer.
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