Spring 2014 Hardlines Strategies

STORE PROGRAMS

The Right Price Retail Pricing System a Blueprint for Retailers W hen it comes to pricing, today’s consumers

Pricing Strategies that Sell Here are some ways you can let consumers know you have the right price. Establish a Price Image First, take a step back and look at the big picture. What brand image do you want for your operation when it comes to pricing? One of the best ways to create a competitive price image is by using the Priced Right Everyday!® signage available from Blish- Mize. This signage, which you can put on your store front and on endcap signage throughout the store, will reinforce your price message. Tell Your Customers Go beyond the physical store level to reach customers. The On-Demand advertising program available through Blish-Mize allows you to create a variety of printed pieces, such as circulars and postcards, you can use to broadcast your low prices. By using the AdViewer function of On-Demand advertising, you can post your circular in online venues such as your store’s website and Facebook page. The more places you are able to reinforce your low-price message, the more likely consumers are to remember it. Implement Price Matching One of the best ways to create a low-price image is to offer to match a competitor’s price. It’s important to create written guidelines for your price-matching guarantee and post it around the store to remind your customers and employees that you do price-match. Establish Proprietary Brands Offer brands customers can’t find anywhere else, such as the Hardware House line from Blish-Mize. A proprietary line of products, whether it’s in bath faucets, lighting fixtures or door hardware, reduces your customers’ ability to price shop on exact items. You can emphasize the quality of Hardware House products while showing their competitive price level. In addition, Hardware House allows you to maintain a good margin.

Big-box stores are taking note, con- tinually increasing the number of price zones across their market territories. Consequently, the number of items priced differently between price zones is increasing. Trends like these are driving Blish- Mize to become even more progressive in how it helps you stay competitive, says Blish-Mize Vice President of Marketing Chuck Short. “We’re operating in a much more edu- cated environment, where almost everyone has a smartphone and quick access to almost any product pricing information they could want,” he says. It’s also one of Dan Drake’s main moti- vations in his role as purchasing manager at RAKS Building Supply and why he often relies on market-specific pricing data he receives from the Blish-Mize Retail Pricing System (RPS) program. Drake, who monitors pricing for all operations in the four-store chain based in Los Lunas, N.M., says his sales represen- tative, Aubrey Cannon, is diligent in price shopping the competition in his market. By integrating national, regional and local research, the RPS program suggests pricing and margins for items using a complex are becoming more and more savvy. With pricing information available on many retailers’ websites, finding the best deal is often as easy as the click of a mouse.

30 Spring 2014 • Hardlines Strategies