Marketeers will tell you price is not the only thing that matters in retailing.
Like a father who might wryly joke with his daughter playing centre forward in the local footy team, before the game.
“It’s OK! Winning isn’t everything… It’s the only thing.”
So it’s true with price and retailing.
You can go on about the thousand other things you can try and do to add value
But mumble, mumble, mumble – pish posh! Seriously!
How much is it?
That’s the question. First and last.
Low prices are attractive.
If you can create the belief in the consumers mind that you are cheap on everything – then your marketing plan is very clever.
This is what Chemists Warehouse succeed at doing.
But what retail marketers don’t want you to know is the ABC of pricing.
They rely on the fact that you dont know it.
(The products mentioned here are available on the Australian market)
“A” products are familiar to most – and their price is generally well known. Panadol (paracetamol) – regular size, regular dose form – well known price.
For example Panadol Osteo Capsules should come around the $6.50 mark.
“B” products are less well known, but the market has an idea of the price range.
Something like a Microlax enema. Purchased infrequently.
“C” product is a specialist thing where the product is unfamiliar and the price is anyones guess.
This technique has been changed greatly by the easy availability of price information on the internet.
But it still persists – and is one of the ways Chemist Warehouse and Woolworths succeed.