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11 October 11

How To Price and Package Your Products To Sell

OK I know it sounds like I am banging on about business in the new economy but trust me when I say it’s because I care and I really really want your business to succeed.

This is a time when we need to think and price creatively! Let’s face it the big boys have been doing it for years and it’s not about misleading our customers it’s about understanding the physiology behind it. I know you may feel like you have no control, with the RRP on your collection because its determined by the wholesaler however there are heaps of ways you can price your merchandise to maximise your sales.

  1. Know which class you’re in- Decide which class you want to be in and be the best in that class. Whether you sell luxury items or bargain basics the same rule applies and as soon as you mix the class you mix the message and you’re sales will drop. Think about-
  • What does your price say about you?
  • What are your competitors doing?
  • Where else can your customers buy this from?
  • Is it easy to switch from one to the other with no real difference?
  • Know how much it is per item and how much it is with overheads.
  • Lower Prices- Think about Kmart and Bunnings pricing structure. They never/rarely go on sale, they will always be the cheapest prices guaranteed. So people automatically know to go there if it’s low prices they want.
  • Luxury Brands- Promote exclusivity, a trick is to be extremely expensive to lead, then have a slightly expensive but affordable collection. That way they are surprised at how affordable it really is. This works well if celebrities are pictured with a handbag in a magazine for example with a price tag of $30,000 people see it jump on the their site and see “Oh look they also have bags for $3000, I can afford that!”
  • Medium Price Points- Think Coles and Woolworths, they promote “Freshness” and supporting the “Community”. They don’t really have any specials anymore however what works really well is the 3 for $....
  1. Anchoring- You need to find your sweet spot and everyone’s sweet spot is different. When you position yourself think about this-
    • Don’t cheapen yourself! This is what everyone does when they are scared. Over the last few years we have slowly become immune to SALE signs because instead of being something we did twice a year, we now have them week in and week out. As you can see by the latest retails reports Sale’s have no impact on your business.
    • Don’t be too expensive for your market- If your business is sitting in a luxury class it is crucial that you back it up with massive amounts of value. Adding value is generally at no cost to the business yet it enhances your customers experience ten fold.
    • Don’t sell rubbish- No matter which class you are in you can never sell rubbish. While the quality and/or level of service may vary, people will always remember if you sell them rubbish and tell their friends. Have standards that are aligned with your prices.
  2. Price Creatively-  Create Value and package them up in 3’s

HOT TIP: You may want to do exclusive offer to your best, most fashion forward customers and release it to them before you put it on the rack.

Think different | Be different



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