Are poor metrics affecting the believability of your bundling? Sales force not executing your pricing properly? Is lack of a playing plan keeping you from saving money and making money? Here are some quick, easy, and brilliant tips from a recent podcast by President of Pricing Solutions Ltd., Paul Hunt. These ideas are all excellent. Just as a winning football coach sets up a strategic game plan after studying his/her opponent's own behavior and game plan, you can use the same approaches for how best to compete in the marketplace. Here are some competitive price tracking and monitoring and product assortment planning and management intelligence tips for you to adopt as part of your basic game plan for retail success.
Problem #1: Your sales force doesn't understand or agree with your pricing; they not only won't execute it, they spend all their energy fighting it.
Solution #1: Teamwork. Educate/socialize your sales force to get them invested in your plans and prices. When they understand the strategy and what you're trying to accomplish, they will be more confident and supportive and prepared to sell premium prices and capture those premium prices. (Hunt).
Problem #2: When you charge for a product or service in a way that is inconsistent with the value you're delivering, there's a disconnect with the customer. You could be charging too much or too little, the problem is you may be bundling a group of products and services that don't make sense from the customer's perspective.
Solution #2: Develop consistent prices befitting the value of the offer. Develop an understanding of your pricing power, i.e. the prediction or rules: Hunt's Pricing Solutions has a "pricing power assessment tool" with criteria that assess where you've got pricing power and where you don't; this is important because if you know where you've got pricing power you can raise prices; and where you don't have pricing power, you might have to hold or lower prices. Another important reason to have this data is so you'll have facts, rather than only perceptions, behind your pricing strategy. (Hunt)
Problem #3: As economy and cost structure changes, how do you keep up with, or ahead of the game, and avoid making decisions or mistakes again and again?
Solution #3: Have a plan -- have a playbook to follow. Lay out your strategies in advance, set out a series of plays for scenarios and what you'll want to do about them. For example, says Hunt, if you have high cost fluctuation and low capacity utilization, you'll need one set of strategies; if you have low cost fluctuation and a lot of under-capacity, you end up with another pricing strategy. (Hunt)
Bottom Line For Your Bottom Line:
These solutions involve and revolve around your pricing and assortment intelligence solutions: Find where you are in relation to your competitors' pricing. Establish a set of strategies or rules for how you want to behave when confronted with business problems related to cost fluctuation or capacity. Know how to set the value of your products.