Retail Pricing Approaches and other Elements of the Retail Marketing Inviting, impressive store décor, visual merchandise attractive Compatible store environment Poor quality fixtures, limited space to move around, wall shelves, untidy Store Environment Extensive assortment Medium Limited variety Assortment Personalized attention to customers, home delivery, exchange facility, customized offerings Support from sales people Self-service, limited offerings, no sales Service Attributes Monopoly, compatible location to target segment Central business district, proximity to competition No parking, poor layout, inaccessible Location Price above market price Price at market price Price below market price Retail marketing mix variable
External Influences on Pricing Strategy Pricing strategy Customers Competitors Suppliers Government
Pricing strategies Customary pricing – retailer sets price & seeks to maintain those prices over an extended period. Prices that customers can take for granted & stable. Variable pricing – when differences in demand & cost necessitate a change, with a view to increase demand, off season discount. Flexible pricing – offering same products & quantities to different customers at different prices. Price lining – retailers establish specified number of price points for each merchandise type & retailers purchase goods to fit the price points – makes price comparisons easier – can help store to upgrade / down grade customer s preference.