In the world of retail sales, price management is not a new or flashy topic. However, in an era of economic recession, attracting and maintaining customers while maintaining margins and simultaneously reducing costs is a complex equation to say the least. Traditionally, many people associate price management with “mark downs” for the purpose of moving excessive or obsolete inventory. While this is one aspect of price management, in the bigger picture, price management is ensuring that your goods are priced to incent customers to purchase while providing you the necessary margin to run your business and yes in some cases this means increasing your price.
Effective price management strategies look at many factors including sales history, demographic factors and competitive pressures. However, one area that is often overlooked is the labor associated with the change and maintenance of prices at the item level. In many retail environments, price changes occur weekly or even daily. The labor required to located, identify and update a price can be very expensive. Reducing this labor cost through the use of bar code and mobile technology not only improves associate productivity but also provides a significant financial return to the bottom line (ROI) as well as improves your customer’s shopping experience through clearly marked prices and consistent pricing at check out.