Five Ways to Price Your Key Value Items for Profit
Whether you’re a retailer or a manufacturer, pricing and promotion spend is one of the largest costs of doing business. But it is also one of the most inefficient. Just this year, the fast-moving consumer goods (FMCG) market saw two consecutive quarters of retail sales decline. And the industry’s response may be adding to the problem.
We’ve seen a slowing of price increases across nearly every category and department, and at the same time, we’ve also seen an increase in promotion frequency. However, these investments have resulted in very little lift and few dollars returned.
So how can manufacturers and retailers win in such an uncertain and changing environment? Through our research, we’ve identified five opportunities to create more efficient price and promotion strategies, reverse negative trends and drive profitability.
We’ve seen a slowing of price increases across nearly every category and department, and at the same time, we’ve also seen an increase in promotion frequency. However, these investments have resulted in very little lift and few dollars returned.
So how can manufacturers and retailers win in such an uncertain and changing environment? Through our research, we’ve identified five opportunities to create more efficient price and promotion strategies, reverse negative trends and drive profitability.
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- MAKE KEY VALUE ITEMS YOUR COMPASS
- ADJUST UPCs THAT ARE PRICE INSENSITIVE AND UNDERPRICED
- THINK BIG ON PRICE: FIND THE RIGHT GAP BETWEEN ITEMS
- IMPLEMENT AN OPTIMAL PRICING STRATEGY
- DEDICATE CIRCULAR AND DISPLAY SPACE FOR THE MOST RESPONSIVE ITEMS
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