6 Ways to Manage Retail Prices Better
Unless you manage your retail prices optimally, you’ll have a hard time being profitable. No matter what kind of retail operations you run, manage the prices of your products is paramount. Here are six ways to better manage your retail product prices for increased profitability.
- Establish prices by geography or zones – One fact of life that cannot be ignored is the cost of living. It’s drastically different in Omaha, Nebraska than in New York, New York. Even if your retail operations expands across the globe–or, especially–your pricing structure needs to reflect the local economy. Setting your prices based on each stores geography makes sense.
- Create promotional campaigns any time you want – There are all sorts of reasons to run a promotion. It can be seasonal, to drive sales during a specific holiday, a special event, or even a permanent price decrease. Whatever the case, you should be able to run a promotion any time it suits you.
- Set markup minimums – Your markup determine how many units you sell, which determines your ultimate profit. Optimize your markups by establishing minimums.
- Change pricing based on your own parameters – Some retailers set prices based on dollar amount. Others change prices according to percentage. You might do both depending on the promotion. Knowing when to use which pricing strategy, and implementing at just the right time, will increase your profits.
- Create user lists – Who is able to change prices in your retail chain? Make a list and give each person access based on their level of expertise. Store managers, retail managers, and buyers may all need a way to make price changes, but give each individual only the permission they need.
- Track price changes and performance – You need to be able to track all your prices, as well as the performance of your sales team. By tracking and monitoring prices, you can better determine which products need the extra push.
Optimize your pricing strategies and you’ll optimize your profits.