Category Archives: Retail Pricing Strategies

Knowing How Much To Charge Is Key To Profit In Any Season

It’s December 25, 2013 as I write this — my annual reprise of Tom Fishburne’s The Twelve Days of Christmas.  The countdown to Christmas 2013 is over! Toward the end, when it came to holiday retail pricing and service, some stores had extended hours — including non-stop shopping — to accommodate the late rush of shoppers. Other U.S. retailers rewa...
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How Best Buy, Target & Nordstrom Executed Their Holiday Shopping Strategies

When I was in Minneapolis for Thanksgiving, I effected my own informal holiday shopping survey. I took a look at the crowds and merchant behavior and came, pretty much, to the same conclusions as Steve Rowen, one of the RSR principles, who wrote of his experience and observations in Black Friday Boston: The End of an Era.” Rowen wrote that Black...
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5 Brilliant Ways For Retailers To Turn Jekyll & Hyde Shoppers Into Buyers

I need to start this post by swearing all readers to secrecy: My wife is a Dr. Jekyll and Mr. Hyde shopper. However, I ask you not to divulge that my wife has anything to do with this price-sensitivity article. With that out of the way, let’s talk about it: My wife recently shopped at Costco. Does that make her a price-sensitive shopper? Maybe, ...
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Rafi’s Ribs: When It’s NOT Wise To Offer Volume Discounts

I licked my chops over this blog post. “Rafi’s Ribs” is my take on Rafi Mohammed’s recent purchase of 30 pounds of ribs for a Korean barbecue — and then, asking for, and getting a generous volume discount from the butcher. (“Without giving it a second thought, the butcher chopped the per pound price from $8 to $6”). After receiving this volume disc...
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Price, Shipping, Or Customer Service? Which Online Retail Strategy Is #1 Shopper Magnet?

At my LinkedIn site, Competitive Pricing For Online Retail, I polled 3500 retail execs and managers to find out your opinion regarding eCommerce Online Retail StrategyWhat do you think is the #1 feature for building your customer base and insuring loyalty of online shoppers? Answer choices were: 1. Have the lowest prices. 2. Provide unequalled...
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How Retailers Might Tap Customers’ Brain Waves To Set Optimal Pricing

Could the key to price optimization be found in our subconscious? Is the brain the path to setting and getting the best prices for your products?  Retailers who want to know about the best retail pricing strategy should take a look at the research of German neuroscientist Kai-Markus Muller, described recently in Der Spiegel, Reuters and BusinessWe...
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Why Did Amazon Raise Its Free-Shipping Threshold From $25 to $35?

You had to be living under a rock if you didn’t hear that Amazon on Tuesday raised its threshold for free shipping from $25 to $35. The media amply reported the news aspect of the announcement, so I’m here, not to repeat the news, but to explore a few of the issues the announcement raises: First, WHY Did Amazon Raise Its Free Shipping Threshold Fro...
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Which Is Better Strategy: High-Price Big Discounts Or Uninflated Regular Prices?

Editor’s Note:  Retail Intelligence Company, Upstream Commerce, welcomes pricing strategist, data analyst, and pricing processes expert, Scott R. Francis, as our newest guest contributor:    Objectives of any sales promotion include moving certain merchandise, getting buyers into the store who might not otherwise shop there (physically or ele...
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Price? Convenience? Selection? Why Do 43% Of UK Internet Users Plan To Holiday Shop Online?

According to a recent article in eMarketer.com, 43% of UK holiday shoppers (who are already internet users) say they are going to shop online this holiday season, as opposed to shopping at malls or on high street. The article was based on a September 2013 “Panel” from media-buying firm, Kinetic, which took a look at spend and behaviors this coming...
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10 Reasons A Retailer Would Be Crazy To Lead With Price

If you want to compete on price, think, think again. Not only are there are many, many bigger competitors that are already offering low price strategies that you would find hard to meet, you are setting yourself up for some extremely negative consequences.  “…You are saying price is your competitive differentiator and signaling the customer to b...
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3 Retail Pricing Strategies That Put Your Sales At Risk

Do you have a particular product that everyone snaps up without hesitation? Do you think you’ve got a wonderful product, but nobody is buying it? Do customers haggle over your prices? Well, pricing, after all, is the most potent variable in marketing and here’s the bad news about retail pricing strategies that put your sales at risk: — If everybody...
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7 Simple Pricing Secrets For Retailers To Put In Their Pricing Strategy Planbooks

Retailers will be delighted to know that you don’t have to price low to get the customer to buy; but you do have to give your Retail Pricing Strategy context and atmosphere, and understand the predictably irrational behavior of people. Here are: “7 Ridiculously Simple Secrets For Retailers To Price Effectively & Make More Money.”* The best thing abo...
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Why Should Walgreens Get Bad Rap For Good Pricing Differentiation?

Walgreens (at the corner of Happy & Healthy) can’t be too happy with headlines last week, when CNN Money, Time, Huffington Post, MSN.com and many others took Walgreens to task that customers might ...
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