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Category management is a crucial aspect of procurement as it goes beyond simply acquiring goods and services. Through the development of categories, the organization can better understand its spending patterns and identify critical areas where savings are possible. Selling at the right price is one of the secrets to a flourishing business. If your goods are cheap, you might sell more but find it difficult to make a profit. On the other hand, if your goods are too expensive, customers will shop at competitor retailers, causing you to lose market share. Category management helps retailers cope with the complexity of their operations and maximize their return on inventory investment. Improvements in product range and merchandising enhance shopper satisfaction and store loyalty and reduce stockouts. These factors help to lift sales. Pricing is one of the most important factors in the field of Trade. Pricing to a commodity means attaching value to the product. To purchase or sell it both the consumer taking the product and the seller giving off the product benefits from the 'value' in return for some bearing.
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