Pyramid Pricing Tactics on Retail Fundamentals

Like to watch or participate in a free webinar I’m conducting this Thursday, March 10? You’ll need a device with an Internet connection and the availability to log on from about 12:00 Noon to 1:00 PM U.S. Central Standard Time. You’ll want to register in advance and download the workbook. For details, please click here.
     The title of my webinar is “Profitable Pricing Tactics for Small Retailers.” The format is interactive, so you’ll have the opportunity to send in your questions using your computer or mobile device keypad. I’ll be doing the webinar with audio and video. The session is sponsored by MyEntre.Net, the online small business and entrepreneur community, in partnership with the University of Northern Iowa Small Business Development Center.
     I recommend this webinar to all retailing professionals responsible for pricing decisions in small to midsize businesses. Looking in at all or part of the webinar also could be useful for people who have not yet seen me do a presentation and are considering a contract with me to conduct a seminar.
     As with almost every “Retailer’s Edge” seminar I conduct, I’ll point out early on that profitable use of the shopper psychology tactics depends on having retailing fundamentals in place and keeping them current. You’ll then gain your retailer’s edge by pyramiding the tactics on the solid foundation.
     Among those retailing fundamentals are:

• Market research
• Strategic planning
• Legal & regulatory environment
• Financing
• Budgeting & cash flow
• Risk management, physical security, & insurance
• Human resource management
• Marketing, advertising, & publicity
• Business ethics

     MyEntre.Net, SBDCs, business improvement districts, chambers of commerce, and cooperative retailer groups are among the many resources for maintaining the base of the pyramid. The last one on the list—business ethics—has a particular importance when it comes to pricing tactics. For instance, we know that a price point of $7.99 looks to the shopper to be noticeably lower than a price point of $8.00, even though the true difference is only one penny. A price reduction from $222 to $211 strikes the average shopper as a better deal than a reduction from $199 to $188, even though the first is actually a lower percentage discount.
     Are you being an ethical retailer if you make use of these cognitive distortions when pricing? In my opinion, yes, you are. But you’ll need to decide for yourself.

Click below for more:
Round Prices to Whole Dollars for Better-Best
Have Discounted Prices End In $1.99 or $2.99