Using Price Tags
Businesses throughout the UK, especially retail business use price tags to clearly label the price of a specific item or product. Research has shown that consumers who can clearly see the price of a product are more likely to purchase it the first time they see it.
Top 5 Reasons To Price Items
Having a clear and concise pricing structure, can help your business to take into account external costs such as building overheads, wholesale price of the item, energy costs, this then allows you to set clear profit margins. Whether an item is full price or in the sale, bold and eye-catching pricing using tags and labels, is a must for any business that sells a products.
The Competitive Price Effect
If customers can see your price you’re charging for an item, but the building next store doesn’t display the price or the price they show is more expensive then the customer is more likely to purchase it from you. In a changing market place and competitive marketplace, it’s important to stay ahead of the competition, whether this be from a business down the road or an online retailer, staying competitively priced is important for any business to succeed.
Online Vs. Instore Pricing
Everyone has a smartphone at hand, and prices can quickly be checked to see how competitive you are. However, instore pricing always has the upper hand over online shopping, if customers see something they want and it’s a competitive price then they’re more likely to purchase it there and then, than wait to order online. Even being more expensive than an online competitor isn’t a challenge, as when customers shop online they’ll need to pay postage and possibly transaction fees. When competing with online pricing, it’s important that the price of the items, reflects the true value of your item, whilst still ensuring your business makes a profit and your overheads are covered.
Value for Money
All customers see value for money in different ways. Although portraying value for money can be difficult, as long as your charging a fair price, then your customers are likely to purchase it. However, using attractive price labels and tags, can also help to entice potential customers. Tags that display words such as sale or offer, are more likely to purchase the item as they think they’re getting a deal.
Spending Patterns Have Changed
Spending patterns have changed drastically over the past decade; the majority of shopping was smaller or cheaper items. Today people want good value for money whilst receiving a high-quality product. At the same time these products needs to be priced in a way that’s attractive and encourages the consumer to make a purchase.