Introduction of prices into the trading program. Pricing in trade: effective methods for big sales. How to painlessly increase the price of goods

The marketing mix tool "price" includes issues related not only to the cost of goods sold, but also to other costs of the buyer. This refers to time, fare, emotional costs that arise in the process of making a purchase. Thus, the price means not only the cost of the product, but also its value to the consumer. The pricing strategy should be consistent with the positioning of the retailer, the strategy of behavior in relation to competitors and other elements of the marketing mix, should also take into account the pricing strategy of the manufacturer, used by him to achieve his goals.

Pricing in a retail trade enterprise is based on two main methods: cost-oriented, market-oriented. Orientation to costs, involves the determination by the retailer of the selling price of the goods as the sum of its purchase price and a fixed percentage of it. In market orientation, prices are set based on perceptions of buyers' willingness to pay for a given product. The main advantage of the cost method is that it allows you to achieve the target level of profit. It is fast, mechanistic and relatively simple. The advantage of the market method lies in its linkage with the concept of marketing, i.e. it takes into account both the desires and the possibilities of buyers. However, the practical implementation of the market method is associated with considerable difficulties, especially in trading companies, the range of which includes thousands of trade items, each of which requires individual pricing solutions. The optimal solution can be achieved by combining the cost and market approaches, when the first becomes the basis of the pricing strategy, and the second - a way to attract customers.

The goal of a pricing strategy is to find the right balance between the interests of the consumer and the interests of the company. In addition, the price should take into account the situation in the competitive market. There are two opposing pricing strategies in today's retail market: Daily Low Prices (DPRs) and High/Low Prices.

Retailers using the ENC strategy emphasize that their retail prices are constantly somewhere between the usual price level and the level of sales organized by competitors, and they do not always offer the cheapest goods. At certain points in time, the price may be higher than buying on sale in a competitor's store or in the wholesale market.

Advantages of this strategy: the threat of price wars is reduced, as buyers, realizing that prices are at an acceptable level, increase the one-time volume of purchases and visit the store more often; the need for advertising decreases, tk. low prices consistently attract buyers; may increase profits, tk. the store abandons the practice of significant discounts adopted in the strategy of high / low prices. The difficulty of implementing the SNC is that low prices must be maintained constantly, i.e. clothing should be sold cheaper than in department stores, and ordinary products (flour, milk, sugar) cheaper than in supermarkets.

Resellers with a high/low price strategy in some cases offer products at higher prices than those of SNC competitors, but they often run sales and actively advertise them. The strengths of the high/low price strategy are as follows: the same product is intended for different segments. At the market entry stage, it is offered to "superinnovators" and "innovators" at high prices, and at the end of the season to "conservatives" and "moderate, frugal buyers" attracted by the cheapness of the product.

Although the retailer's main pricing strategy is most often a combination of EPR and high/low prices, various price incentives are often offered to customers. Very popular tools to attract buyers through price incentives are: coupons, discounts, plastic cards, price leadership, multiple pricing, price equalization, odd and non-round prices, etc. All of them are determined by the main pricing strategy.

Coupons are certificates that entitle their holders to a reduced price or other benefit when purchasing a product or service. They are mainly used for consumer goods. Coupons are published in newspapers and magazines (often after advertising the relevant product), they are laid out in consumer mailboxes, sent by mail, applied directly to goods, handed out to passers-by. Coupons inform consumers about the product, encourage them to make purchases, draw their attention to a particular store, enhancing its competitive advantage, and increase the intensity of use of the product. Most often, with the help of coupons, they try to attract new customers, attracting a regular customer is not always advisable and is even negative, since the total number of purchases does not increase, and the profit from the sale of a unit of goods decreases.

Discounts from the price - this is the part of the price that is returned to the buyer of the goods. The retailer carefully calculates the system of price discounts, they are beneficial to him when working with product suppliers and, under certain conditions, when settling accounts with end consumers to create competitive advantages.

Plastic cards are used by firms that work with high margins, which allow them to painlessly reduce prices for any buyer, or by firms conducting an advertising campaign, where a plastic card is considered as an element of advertising. The card entitles you to a discount for a certain amount or, more often, for a certain or floating percentage on your next purchase. Floating interest may change its performance depending on the day of the week, season, the introduction of additional benefits, or increase in proportion to the amount for which the buyer has purchased goods from a trading company over a long period.

The scheme of club plastic cards differs from the previous method of providing discounts for the next purchase only in that the organization of the club, schemes and distribution of the cards are taken over by a specialized third-party company (for example, a joint project of the Karusel retail chain and Alfa-Bank - the “Visa-Alfa-Bank Magic Card”, which allows you to pay in any stores, pharmacies, restaurants, beauty salons and other trade and service enterprises around the world and at the same time accumulate additional points that can be spent in the Karusel network or the Malina accumulative program, which allows you to accumulate points by making purchases in partner merchants of this program, including the Citystore supermarket).

Price leadership (brand strategies) in which a retailer sets prices for certain products below the usual level, hoping that this event will attract additional customers. This will increase the sales of other goods in the store, as the buyer gets the impression that the prices in the store are lower than in others. Sometimes such goods are called unprofitable leaders. Although, in order to be unprofitable, such goods must be sold at a price below cost, which usually does not happen. As an "inviting" product, everyday goods are used, the prices of which are well known to buyers. In supermarkets, for example, eggs, milk, sunflower oil are usually used as "inviting" goods. The "inviting" product strategy is designed for price-sensitive buyers.

Multiple pricing is that homogeneous goods of different weight (volume) are sold at different prices. For example, 100 gr. a package of coffee of any brand will always cost more (in terms of 100 grams of mass) than the same coffee, but in a 200-gram can. This method is aimed at increasing the volume of sales of goods. Its peculiarity is that it allows buyers to stock some goods for future use, consider the purchase profitable, and ultimately leads to an increase in the consumption of goods by the buyer.

Multidimensional pricing is used to "push" a product and is aimed at getting the buyer to buy two or more types of products at the same time. For example, in this way: "three for five hundred rubles."

With the price line alignment method, the store offers different levels of predetermined price items. The buyer is left to choose between cheap, or medium-priced, or expensive goods. Moreover, on the shelves of the store, goods are grouped by price levels. When purchasing goods, retailers choose those that correspond to the chosen price levels. It is easier for the buyer to make a choice, since he does not get confused in a large number of brands. Buying takes less time.

Odd and non-round prices are a price concept with psychological ramifications. Such pricing is inefficient for "pre-selection" items, which require some thought to purchase. (For example, when buying a car, it doesn't really matter whether the buyer has to pay $5,995 or $6,000 for it.) Non-round prices are associated with the buyer with a cheap hot item.

To improve the visual perception of prices, its adjustment is used (for example, setting a price of 499 instead of 500).

By setting prices for goods without a preliminary analysis of the market, demand, competitors and purchasing power, you risk going bankrupt. To work for profit, you need to understand where the retail price comes from and why a properly organized sale of goods at a price below the purchase price never leads to losses.

What should be included in the retail price?

The formation of the retail price is mainly influenced by: the cost of goods; the cost of its delivery from production to the final buyer; the ratio of demand to the volume of supply of the product on the market; uniqueness of the offer; VAT; purchasing power.

In spontaneous markets and rural fairs, it is still popular to set prices on the principle of multiplying the wholesale purchase price by two. Bought for 100 rubles, sold for 200 rubles, it seems, and not at a loss. But this rarely works in retail, when a 100% markup does not cover the cost of delivery, rent of retail space, VAT and other expenses.

The retail price should include the purchase price and shipping costs. Further, the margin for the uniqueness of the product will be appropriate, when buyers simply do not have the opportunity to buy the proposed product elsewhere. But it is also important to consider whether the product being evaluated is in high demand and whether customers have the opportunity to pay for it as much as indicated on the price tag. Additionally, the amount includes VAT, calculated according to the classical formula. And only after analyzing the market, competitors, studying the audience, creating a strategic sales plan and other factors, the final figure on the price tag is collected.

How to evaluate the effectiveness of pricing?

Price efficiency needs constant monitoring. With a decrease in the purchasing power of the audience, the exchange rate, inflation and other manifestations of a change in the state of the market, price tags are subject to adjustment. In addition, there are subjective factors, upon fixing which the outlet must change the prices of goods in order to avoid a strong decrease in profitability.

Evaluation of customer reaction

Not always the buyer will go where it is cheaper. Therefore, an unplanned decrease in the flow of customers is not a reason to change price tags. Sometimes it works much more efficiently: improving the quality of service; expansion of the target audience; expanding the geography of delivery; change in promotion strategy.

Therefore, for effective analysis, it is necessary not only to observe the processes, but also to understand the causes of their occurrence. For example, an increase in the price of a product can be perceived by the client as an incentive to urgently buy it, because "if it rises in price, it means that they are quickly dismantled." Price reduction, on the contrary, in a number of cases leads to negative consequences, especially in sales of goods of a high price segment, the target audience of which accepts it with the thought: "It's getting cheaper, so no one takes it."

Evaluation of competitors' prices

In general retailing, it is especially important to keep a close eye on competitors' prices. This is especially true for products that sell well. Sometimes even a small price reduction of a competitor for peas for Olivier on the eve of the New Year can help him steal the lion's share of your customers who, in addition to peas, will buy other necessary goods for the festive table at his outlet, even if their prices are much above yours.

Supplier/manufacturer market assessment

If there is sufficient demand for a product, you can safely raise its price before the manufacturer decides to abandon its production. There can be many reasons for failure - from the transition to the production of an improved version and to the closure of production facilities. In addition to monitoring the prices of competitors, large retailers also monitor the prices of manufacturers of raw materials for goods purchased by them for retail sale in order to always be “in the know”.

Most Popular Retail Pricing Strategies

There are two of them: EDLP and H / LP.

EDLP's strategy is to keep prices consistently low. It works great in many retail chains with a large customer flow. An example of this is the ATB supermarket chain (Ukraine). The distribution of points of sale and consistently low prices for vegetables, fruits and essential products makes the retailer one of the leaders in the retail food market in a number of regions of the country.

H/LP strategy - reasonable price dynamics between the marks: "very cheap" and "very expensive". No less effective strategy for the domestic market. Best of all, by planning sales in accordance with this strategy, so-called “single price stores” increase sales. As an example, we can take the FIX Price chain, which offers the richest selection of goods with a single price tag. As a rule, a client who sees a certain product that is much cheaper than in a neighboring outlet lulls his vigilance and believes that everything is cheaper here. In fact, about half of the commodity items are sold at a significant markup. Due to the correct balance, the network develops.

Basic pricing methods

If there are only two retail pricing strategies, then there are three ways, that is, vectors of orientation of a retail trade enterprise: by costs; on demand; by market.

The first method of cost pricing is popular in the trade of products, household chemicals, and essentials. Competition in the niche is high, so it is more profitable to form price tags based on the costs of purchasing, shipping, storing and selling goods.

It is appropriate to form a price depending on demand in the niche of clothing, footwear, automotive products, sports equipment. Demand for certain niche products changes seasonally and can be affected by special events. Thus, the 2014 Olympics dramatically increased the demand for sportswear and shoes with the symbols of the competition, which also stimulated price growth in the segment.

Market benchmark means that the price of a product is collected according to the prices of substitute products and related products. Some home improvement stores use this strategy by introducing products that are new to the customer.

An example of a retail chain with a competent approach to the formation of retail prices:

The chain of grocery supermarkets "Magnit" works on the strategy of H / LP. While maintaining a single low price for the main groups of goods, the retailer offers a number of products with a lower level of demand, but higher prices. A competent focus on demand is obvious, which is also proved by the location of retail outlets (most often in residential areas, in places of medium traffic). The results of regular monitoring of competitors are also noticeable, which is reflected in a positive direction for the buyer on the price tags of products, the range of which in competitive retail chains is decreasing.

Instead of conclusions

The price of the goods consists of the costs (financial, resource) for its delivery to the end consumer. The price of a product can change depending on changes in its value, demand, economic situation and many other factors. And for the correct formation of the price, regular monitoring of audience loyalty, the actions of competitors and the state of the economic environment of the market should be carried out. There is no single pricing formula for retail, each group of goods is influenced by different factors, which make their own adjustments to the figure on the price tag.

Pricing is what the very cream that every online store owner plans to shoot depends on. For the sake of this plus, the whole business is started, otherwise it simply does not make sense. The margin in online stores can vary widely, it all depends on the format of trade and the specifics of the goods offered. For some types of products, it is enough to have a small percentage and this will bring a pleasant income, but there are also sales segments in which the margin is very high.

What is the markup made up of?

If we analyze the entire list of conditions, affecting the final price, it turns out that you can not proceed only from your needs.

The margin in the online store is formed under the pressure of external factors.

The cost of similar products from competitors.
Sales volumes.
Target audience of the site.
The type of product offered.

Pricing in an online store also depends on the contract with suppliers and the format of the site. It is worth considering different options for pricing, the main schemes are as follows:

The store acts as an official dealer of any manufacturer.
Multi-brand reseller.
A site that offers products directly from multiple suppliers.
Stores gift certificates or coupons for discounts.

The formation of the final price is affected by and. Some online services immediately include payment for delivery in the cost of products.

Each of the options has its own nuances of compiling the final price of products, so you need to analyze them all in more detail.

Official dealership

If you managed to conclude an agreement with a company that does not have a representative office in the region, then such a point of sale has every chance of success. Working directly with the manufacturer, it is easier to follow price changes, updates in the range.

Usually at the conclusion dealer agreements the supplier negotiates the amount of markup that can be set for sale in order for the product to be competitive. Often they do this - the partner offers a discount from the general price list. It is the size of this discount that will become the trade margin on the goods.

Another option would be to enter into an agreement percentage of sales. That is, the partner pays a bonus to the store for the product sold in a certain period of time. In this case, it turns out that the owner himself does not decide what the final cost of the product will be.

Multi-brand resellers

The complexity of pricing in multi-brand stores is that they have to look at the offers of competing online sales outlets, but at the same time do not forget their own needs and desires.

Such stores cooperate with other sites and buy goods from them at prices below the average, as they are wholesale buyers for them. In this segment, the competition is higher, the final cost of the goods depends on the offers on the market.

Work directly from suppliers

With such trade markup on goods in online stores can be as high as possible, but still the cost must remain competitive. To protect themselves, sometimes they enter into an agreement that prohibits the supplier from supplying goods to competitors in the region.

Gift Certificate Shops

This type of site works according to a special scheme. Let's say a store offers a coupon for a set of spa services. It is sold at a price at which the same services can be purchased at the spa itself. Then the store transfers the money to the salon, minus interest on the sale. The amount of remuneration depends on the agreement.

Approximate margins in various segments

Pricing must be taken into account market saturation A. If the store sells electronics, then in this area the margin will not exceed 5% due to high competition. At the same time, accessories for phones and tablets are sold with a markup of up to 300%. It is these goods that often bring the main income to such stores.

Online clothing sales are quite popular. This is a special segment due to the seasonality of goods. They often charge a high markup on new collections to ensure good discounts during the sales period.

You should also separate products into segments. In sales of branded clothing, one does not have to rely on large volumes, but the margin there sometimes reaches 100%. The markup in the online clothing store of the economy segment is much lower - 10-20%, but purchases in them are made much more often. This also applies to underwear and children's clothing - these products are purchased frequently, so the desired profit can be provided by the number of sales, and not by a high margin.

Gift certificate and discount coupon stores operate on a percentage of sales ranging from 10 to 25% of the purchase. Beginning salons often offer good collaboration bonuses to secure advertising on third-party sites, and are happy to collaborate with such projects.

It is worth considering the format of the store. If the site is aimed at wholesale, then the margin will be small, only a few percent, but the volume of purchases will allow you to count on a good profit. Universal sites offer several price options on the page at once - for wholesale buyers, for regular customers and retail purchases.

How to be competitive and not sell too cheap with a margin?

Before opening a store, it is worth calculating all the expenses that the site will require per month, as well as the risks associated with storage or damage to goods. This does not include the expected profit of the owner. The amount received is the minimum that the project must earn in order to break even.

Next, they analyze the offers of competitors - in order for the project to work successfully, at the initial stage they offer prices slightly lower than on other sites. Having the price of the supplier and the cost of the goods on the market, they find the difference - this is the margin that the store can afford.

Competitors' average cost - supplier's price = markup.

From this it is clear that the most profitable business will be built on direct deliveries, because this is how you can ensure a low purchase price.

Once the markup is known, the minimum number of items to sell can be found to cover the cost of the job.

Costs / markup = minimum sales volume per month.

The volume of sales that results from these calculations should be analyzed to determine whether it is realistic to sell such a quantity of goods.

Underpricing can help build volumes, as well as attract new buyers, but you cannot go below the level that is obtained in the calculations. Too low cost is sometimes on the contrary repulsive, as the buyer may be distrustful of the quality of the products offered.

Pricing is a tricky balance between the desire to earn as much as possible and to keep the project competitive. Calculation, constant monitoring of the market and suppliers' offers will help here.

In recent months, the owners of online stores have been facing an acute problem of pricing - suppliers regularly increase the purchase price, and buyers are trying to save money. To maintain competitiveness and achieve the required performance indicators, it is necessary to choose the optimal pricing mechanism.

How the cost of goods in an online store is formed

The cost of goods in an online store, as in any trading organization, is formed from the sum of the purchase price and the margin. If the supplier assigns the RRP (recommended retail price), then the task is simplified a bit - it is impossible to set the price below it, and usually it does not make sense to set it higher. When the price can be set independently, it is necessary to calculate and analyze several factors, for example:

fare;
telephony and internet;
payment to employees;
warehouse or office rental;
other expenses arising in the course of work.

Based on the planned sales volumes, a calculation is made - what profit must be obtained in order not to work at a loss, as well as the amount of allowable possible discounts. At the same time, the price should be attractive to buyers - lower than that of competitors.

It should also be borne in mind that the selling price for the same goods from suppliers may be different. Therefore, it is necessary to regularly monitor more profitable offers. You can reduce the purchase price in several ways:

constantly look for new suppliers, not only online, but also at various exhibitions and presentations;
monitor competitors' websites with a lower price - sometimes you can find supplier's watermarks on photos, and sometimes photos are loaded directly from his website;
try to look not for intermediaries involved in resale, but for direct manufacturers or dealers;
even if cooperation with the supplier continues for a long time, it is possible to agree on additional discounts and special conditions with him.

To ensure that the information on the website always remains up to date, you can use special services to track prices on the competitors' website, which will allow you to quickly change them if necessary.

You can form prices using several strategies:

Applying periodic discounts. When using such a strategy, prices for goods decrease, for example, depending on seasonality or time of day. At the same time, this discount is predictable and buyers themselves know when there will be a reduction.
Apply random discounts. Such a strategy does not allow buyers to predict a decrease in value, since this does not happen often. This way, shoppers who track prices regularly will buy at a discount, while casual shoppers will pay the full amount.
Price discrimination. When using this strategy, the same product is offered to different buyers at different prices. For example, depending on the channel from which they came. But at the same time, it is important to make sure that buyers from different channels do not overlap.
Market penetration. This strategy suits direct product manufacturers to a large extent. By increasing production volumes, the cost is reduced, which allows you to force out competitors.
Differentiated pricing. Since buyers in an online store do not have the same level of income, it is possible to offer them the same product at a different price. This can be done, for example, by adding additional options.

Any of these strategies can be combined for maximum effectiveness.

Price Adjustment Tools

To adapt prices in accordance with changes in the market, maintain demand and fight competitors, they need to be adjusted regularly. This can be done in different ways:

geographical adaptation - change in the cost of goods depending on the region of sale. This takes into account the cost of delivery, the remoteness of the region, the demand in it and the shortage of products;
markup must be justified. Often the cost is increased based on the popularity of the product, as well as due to its limited release, novelty or other factors;
discount - reducing the cost to increase the attractiveness of the product in the eyes of the buyer. As already mentioned, they can be temporary, seasonal, as well as dealer, wholesale, partner, etc.;
use of loyalty programs - special offers that are developed to retain customers. This includes the issuance of discount cards, a point system, etc.

Another way to attract buyers is price provocations. At the same time, price changes are not used here at all, but only special promotions that evoke emotions among buyers. For example, a discount for presenting a competitor's discount card, etc.

How to painlessly increase the price of goods

Discounts, promotions, loyalty programs - all this only fuels the interest of buyers in goods. But sometimes the cost of goods needs to be increased, while not alienating customers. There are several ways to change prices while retaining customers:

Alternative option. If it is necessary to increase the cost for some positions, then it is important to offer the buyer an alternative - albeit a slightly worse quality or with reduced functionality, but affordable.
Donate profit. You can add a product to the assortment of an online store that will attract a large number of customers, but at the same time, do not bring profit at all. It makes sense to do this in those stores where the average number of purchased goods in one order is more than one. It is calculated that buyers will "finish" the basket with other purchases, the profit from which will cover the costs.
Reduce the cost of the main product, but, at the same time, increase the consumables to it. For example - a vacuum cleaner and bags for it or filters.
Proposal of accessories. The item is similar to the previous one - for all related products, the markup increases as much as possible.
Sale of sets. In this case, the reception works in both directions - the goods can be completed, or, conversely, sold separately. If the price of a whole set is high, then the cost of individual goods sold from it can be increased. And vice versa, to complete sets of cheap and expensive goods, or equal in value.

Regardless of the chosen pricing strategy, the key to successful sales is the obligatory monitoring of competitors' prices and control of the expenditure side of the online store.

You have conducted a market analysis and analysis of competitors, decided on the desired assortment and price. But how well did you do it?

How long ago did you review the pricing policy in your store? If you have not thought about it for a long time, then most likely your income could have been higher over the past year. Revising the pricing strategy can significantly improve the situation.

Let's look at typical mistakes that can be:

"Set and forget" principle.

Pricing is a key aspect of any business. But despite this, many companies focus on the development of the product itself and its promotion, postponing the price issue until the last moment. Unfortunately, in the modern market, most of all buyers are concerned about the price.

Pricing without prior research.

Many stores still do not understand what is needed to revise the pricing policy. One such possibility is split tests. They will help you test a variety of pricing strategies and choose the most effective one. Remember: research, analysis and tests are the three components of pricing.

Pricing based on costs.

If you set the price of your product only on the basis of your costs, not paying attention to the usefulness of the product, then you may end up with lost profits (if you set a price below the average), or a decrease in demand (if the price is above the average). Correctly evaluate the value and usefulness of the proposed product.

Using the price set by the market.

There are cases when managers do not engage in pricing at all, but assign an average market price to a product. This can slow down the growth of your business.

Price comparison.

This pricing method is not always the best. Store owners often directly compare prices with those of competitors. At the same time, when determining the average price among competitors, many novice businessmen put the price of their goods 20-30% lower and use this as a competitive advantage. In this case, the effect can be completely unpredictable.

Poor knowledge of the target audience.

If you have not clearly defined who your target customer is, then most likely you may have difficulty identifying their needs, it will be impossible to determine the real payment potential.

Inappropriate price range.

It often happens that some entrepreneurs apply too wide a range of prices, while others, on the contrary, do not offer a price choice at all. Both extremes are bad. Offering goods of the same price range, the store owner may, firstly, not cover the majority of potential buyers, and secondly, demand will decrease among the remaining buyers. This is due to the fact that in the absence of choice of both the product and the price, purchasing power falls. According to research, with a large number of a similar product at the same price, the probability of buying is sharply reduced. If you have goods with very different price levels in your store, then, most likely, the choice of goods within each price group is small. The probability that this item of exactly this quality is necessary for the buyer is quite low.

Inappropriate pricing.

You need to make sure that your buyers get a proportional benefit by paying for the product. The quality of the product must match the price. After all, if the price is too low, you lose profit, but if the price is too high, then buyers will either refuse to buy, or they will feel deceived. Both options will affect the size of your profit.