Behind the elegant window displays and colorful online marketplaces, retailers are fighting a profit war; a war in which profit margins can be as low as 1-2 percent in a market that is rapidly changing. To compete in such a tough environment, retailers need to be armed with the best pricing strategies possible to win. When talking about profit margins, every percent matters, and the right pricing strategy can influence margins drastically. So which strategy is the winning strategy? What pricing method boosts profit margins enough to give competitors a run for their money?
Three Ways Grocers Protect Alcohol Margins
When a customer enters your store for alcohol, they have an idea of what they’re going to pay. They are loyal to your location and watch advertisements, or they have visited a competitor and purchased the same product at their store. Either way, they have a price they expect to pay and won’t accept buying a case of beer for more than they anticipated. So, if your customers won’t accept a variance in what they expect to pay for alcohol, neither should you.
In the grocery space…
The Tipping Point… The Right Time for Solution Providers to Emphasize Sales & Marketing
Solution providers spend the early years of their existence immensely focused on building their product(s). The vast majority of resources are allocated to programmers, engineers, product development people, etc. This is as it should be for without a solid product little else is possible. And yet as a company aspires to grow there comes a point where, as a percentage of total resources, a proportionately larger share must be allocated to sales and marketing. This transition point is a vital prerequisite to growth and yet many solution providers miss this timing and, in so doing, miss windows of opportunity – sometimes for years on end.
Some guidance…