5 Ways to Control Product Pricing (Without Reductions)
Controlling product prices has its challenges, but it’s not as difficult as it seems. You can keep your prices at an optimal level without cutting prices and losing money. Here are 5 proven ways to control the prices of your products without reducing prices and taking a loss.
- Order the right amount of inventory – If you order too much product, you’ll end up having to reduce prices to get rid of the excess supply. Control supply and you can sell your merchandise at full price at every store.
- Employ the proper allocation – Some of your stores will sell more of a particular type of product than others. You can control prices by ordering the right amount of product for each of your locations. Allocate the right amount of product to each store location and prices will take care of themselves.
- Make the necessary seasonal adjustments – Your inventory should fluctuate depending on the season. If you run a sports store, increase the inventory for your summer sports in the spring and decrease your winter merchandise. For fashion, follow the seasonal trends. Order the right amount of product for each season and prices will never need to be reduced.
- Establish rules for automatic replenishment – Rather than rely on human error, take a look at historic trends and establish appropriate rules for replenishing each product at the right time based on what you’ve sold in the past. Chances are, you’ll find that your replenishment needs vary from season to season or month to month. You can set rules to allow for those variations and replenish your product according to those rules.
- Develop efficient warehousing practices – Many retail chains lose money through warehouse inefficiency. Product gets lost or stored in bins for long periods of time. You can cut down on these inefficiencies by laying out your warehouse to control supply chain efficiencies and keep the right product going to the right store. This increases profitability in two ways: First, your merchandise goes to the right place and therefore sells at full price more often; and secondly, you cut the costs of your operations.
ChainDrive’s Price Management Software solution is designed to help your retail chain be more efficient in managing your product flows and keep your prices optimal by allocating and replenishing as necessary for every store in your chain.
Take the guesswork out of managing prices and stay profitable.