It’s the Holidays and retailers are gearing up to sell off their unwanted inventory to make room for next year’s inventory. During this time of year retailers will turn to the typical mild discounts on newer merchandise and huge discounts on inventory that hasn’t been selling. Take CAUTION and read this article before putting away that pricing gun.
Many retailers will re-price items they want to clear out for a weekend or seasonal cash raising sale in their store. But where most retailers are failing is that they only re-price and discount the items they want to move, not the items their customers actually want.
Here are a few things to keep in mind when pricing for the Holiday Selling Season:
1.) Replace every price tag with a sale tag. This method will significantly increase your sales compared to using discount signs without re-pricing merchandise. Only stores that use scanning technology and do not place prices on merchandise as a regular course of business, should consider using rack signs only.
2.) Price may be the most important success factor. Your pricing strategy must attract customers to the store. One of the best draws, for example, is the promise that everything is on sale. Every item SHOULD be marked down. That’s not to say prices must be substantially lower than the prevailing market price. Having prices that are slightly below market is normally sufficient.
3.) Carefully consider pricing for items you feature in advertising. Look for items or categories of merchandise that are broad in appeal-with your customer base- and that you have sufficient quantity to promote without the fear of running out. Price these items to draw customer traffic and then feature them prominently in your advertising. Usually a 20% discount is a good price for these attractive items. Of course some merchandise won’t draw a crowd no matter what price you advertise. —#1 rule of thumb here goes back to marking everything down. If you want to get rid of old inventory, put something on sale people want and then include additional discounts on your old merchandise so you can move it quickly.
You can have a FREE store analysis and planning guidance for a High Impact Weekend Sales Event by having one of our Senior Consultants consult with you over the phone and then, if it is mutually agreeable, make a visit to your store to complete this process (some travel fees may apply if the consultant makes a visit to your store following your phone analysis)
* Offer is for Retail Business owners only. Please call us at 303-333-4453 for more details.
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