Lego’s front windows now hold a “Gallery”
For every retailer, pricing is a critical (if not central) focus on dominating their competition. But even in today’s mobile technology world, many retailers are in showroom denial. It is faster and easier than ever for your customers to compare prices in real time. Recognize that shopping has changed: shoppers continue to peruse stores but purchase online for a number of reasons: better pricing, home delivery, wider selections of colors or sizes. The sooner retailers accept this is happening, the sooner they can take steps to overcome this new business pressure. Because this new way of shopping isn’t going away.
First, retailers need to clearly understand how they compare to the competition. That means looking at hard data to accurately compare prices, delivery policies and assortment. Then, decide to either match the online retailer prices on a year-round basis or not.
Second, make it easy for customers to comparison shop as well. It may make you quiver, but it works. Consumers have a knack for finding deals. So they will appreciate it if you make it easy for them to compare. If you will price match or you have the best deal, your shoppers will be confident that they are getting the best price, Which makes them feel good about their purchase.
Third, build a process and a system for making price comparisons a part of your standard operations. Tools and services exist that can scour pricing data on Key Value Items and other critical products to make sure you are aware of price changes in the market as they happen.
Fourth, don’t make competitive pricing a race to the bottom. Understand what else makes you great (service, selection, location, easy returns, etc) and make it a key part of every customer transaction. Help your shoppers understand that there is more than prices that makes you great to keep them loyal. Afterall, your store is more than a showroom.