Avoid These Price Management Mistakes
In retail, price management has to be done right or it causes a domino effect — poor pricing affects customers, customers go somewhere else and give poor reviews online, and soon there is a reputation management problem as well as pricing problems. Here are the most common price management mistakes retailers make:
- Not keeping up with rising costs can mean your pricing is not updated to reflect your actual cost, and profit shrinks to crippling levels.
- Markup errors mean over- and under-pricing happens whenever the human makes a mistake.
- One price on the shelf and a different one in the system at POS only makes customers happy when it’s lower. Otherwise, you have a consumer relations problem on your hands. Spot check and train sales staff in proper policy procedures.
- False savings are promised when the “reduced price” tag covers a lower original price. Angry customers can now post the picture of the lie to a global audience. That’s the kind of social media sharing you don’t want.
- Spread sheets and systems requiring manual intervention take too long for the real-time world of integrated, multichannel retail.
Software Can Protect Pricing From Mistakes
Utilizing a well-designed software like ChainDrive Price Management protects retailers from pricing mistakes because it automates much of the process without losing control of every aspect of the process. Integrating price management throughout every channel and in every stage of a product life cycle ensures profitability, price consistency, and transparency so that customers and retailers are both pleased with the result.