One employee in your store should have pricing of the merchandise as their primary responsibility. In Making Money Is Not Illegal, Immoral or Fattening, here's how we describe the role of Bob the Profit Builder, the Retail Pricing Specialist:
"Bob puts up the bin tags with the new prices on them. Bob is authorized to recruit help if he's got a very large price change, but by and large, it is Bob who puts up the bin tags, and it is always Bob who takes responsibility for the bin tags being perfect. Bob knows about product locations in the store. And to pull it all together, Bob overflows with high-quality common sense."
Pricing must make sense to the customer. For example, with something like drill bits, the customer doesn't expect the price to go down as the size of the drill bit goes up. This is another area in which the Retail Pricing Specialist is invaluable:
"A really big benefit in having somebody do retail pricing in our stores comes when there's a pile of bin tags out on the sales floor. Employees who prefer to be doing lots of other things than put up bin tags end up putting up those tags as fast as they can so they can get that sheet clear and just throw it away. In doing it that way, they are missing one very important element: Once those bin tags are up, they forget to stand back, look, and spot the places where you have to say, 'That would not make sense to the customer.' You'd be impressed by how many thousands and thousands and thousands of dollars we've made in our company just by having Bob stand back to look at the relationships among the item prices."
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