Why Focus on an In-store Retail Pricing Strategy in 2021?
New challenges for retailers
Now is the time to look forward. With retailers being able to sell in store again, they are facing the huge challenge of product overstock situations combined with a need to generate cashflow. Some large retailers are able to “warehouse” overstock products and out-of-season items such as apparel. However, not all retail sectors are as fortunate, either for cost reasons or the time-sensitive nature of their goods. The need to generate cashflow is forcing increased competition for consumer spending in today’s more cautious and price-sensitive world.
A strategic approach to the retail price labeling problem
The benefits of omnichannel retailing, in terms of having a consistent customer experience across all consumer touchpoints, are well accepted. In order to get their cash flow moving again, retailers now need to make their offerings even more attractive to win over customers who are likely to be more price-sensitive and less loyal than ever, but who still want to buy “value” and not “cheap.” This will be relevant across all retail sectors, from convenience to apparel and beyond. For example, convenience store retailers are already focusing on optimizing the customer experience by making it as easy as possible for them to buy when in-store. That means having the right mix of goods, displayed in an appealing manner with all prices and offers clearly displayed in order to maximize selling and upselling opportunities.
Turning strategy into action
Retailers need to take all of the attributes of the omnichannel retailing approach and apply them as effectively as possible to the total store environment. This short video shows an example of a clothing retailer, with omnichannel marketing principles that can be applied to many retail sectors, including convenience stores. By focusing on the in-store retail pricing strategy and markdown strategy and implementing flexible technology that allows store staff to react to consumer behavior, retail businesses can simply and quickly adapt the customer experience. And they can maximize spend using tools like custom price tags for labels with “WAS/NOW” pricing and “Special Offer” information.
How can retail price labeling technology help?
If any retailer is using handwritten markdown and “Special Offer” tickets for retail discounting, there is clearly opportunity to improve the in-store customer experience and the retailer’s image in the eye of the consumer. The same is true for the use of price guns in store. Technology solutions that give the retailer a low-cost but effective pricing toolset that’s scalable as the retailer grows range from just a few hundred dollars per unit as a capital purchase.
However, for retailers that wish to preserve cashflow, the Hardware-as-a-Service (HaaS) options are available, allowing the store to pay a low monthly fee with no upfront capital expenditure. HaaS programs are available for everything from standalone, desktop or mobile labeling solutions to fully integrated company-wide corporate pricing and markdown solutions for multiple stores.
The advantages of an efficient in-store pricing strategy
Cost savings over the historical approach
- Print the right retail pricing labels, only when they are needed
- Plain labels are cheaper than printed labels
Save staff time on pricing tasks
- More time engaging with customers
Better store and brand image
- Consistency across sales channels
- Customers see value not “cheap”
Simplicity & clarity of pricing = greater purchase rate
- Customers will walk away if final price is not clear
Fewer pricing mistakes & POS overrides, less lost revenue
What is in it for the solution implementer?
Whether it’s an internal IT department or an external solution provider, there are several benefits for the organization delivering the retail pricing strategy solutions to the end-user touchpoints or stores, regardless of the retail sector they are in:
- They are saving the store money and improving their service – thereby adding value to their customer
- They are bringing a new revenue stream to their organization as traditional sources diminish
- They are developing an ongoing annuity revenue stream through label sales and PaaS options
- They are delivering a wider range of complete solutions: diversification of revenue sources
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