Price Promotions – Do I need to do them to keep up with my competitors In retail?
Whenever you see a flyer for a local grocery store, or you notice posters up, there seems to be more and more promotional offers. Buy one, get one free, price marked $1 packs or special discounts – it can appear that using price promotions in retail is a strategic way to attract greater footfall. For many smaller retailers, the prospect of cutting the prices of goods which are already stretching margins can be concerning. Absorbing costs by cutting profits can make it more difficult to make enough income for running a store. For larger names, the buying power is far greater and unit prices are brought down when buying in bulk which means that they can sell out at less without damaging margins. For smaller retailers, being creative with your retail marketing without having to slash your prices can help you retain sales and margin. And AGRetail have the answers.
Creative Retail Marketing
Price promotions have their place in retail marketing, but there are certainly ways to increase visibility of your products and your brand without having to cut the prices. If you make your range appear desirable, and that it is the “must have” for your customer, then you will be less likely to have any reason to cut prices. The decision making process for buying would follow an identification of a need, and availability of product to meet the need – if your marketing cleverly demonstrates why they need your products, and then they are there waiting, they can trigger the customer to become a buyer. For example, take a lipstick – a point of purchase display with a great image of someone beautiful wearing the product, the customer is likely to put themselves in the position “ this lipstick helps me look great” and as such can help encourage sales. Window graphics with images of people in your clothing range can be inviting, or wall graphics with essential electricals used by happy people will all trigger positive thought processes in potential customers.
To find out how you can make the most of your marketing, call AGRetail for a friendly chat today.
