Alternative retailer pricing
Alternative retailer pricing. Each retailer offers a wide variety of prices, ranging from cheap to very expensive. For the same brand of goods, the set price may differ from one retailer to another.
There are retailers who charge high prices, because they also offer certain services such as an attractive and comfortable store atmosphere. Usually department stores and specialty stores fall into this category.
On the other hand, there are also retailers who charge lower prices. Included in this group are discount stores, namely stores that sell goods needed by household consumers at completely discounted prices. This type is implemented by the Hero Discount Store. Stock Market and Super Bazaar.
Retailers can also be grouped by location. namely downtown central business districts, strip developments, and shopping centers including malls (such as Lippo Karawaci, Citraland, Pondok Indah Mall, and others).
2. 7R Strategy in Retailing
To support retail business success, it requires the implementation of the 7R strategy which consists of Right product/merchandise, Right price, Right quantity, Right place, Right time, Right services, and Right appeals/promotions.
These seven components must be carried out in an integrated manner, so that retailers can fulfill their function as a right retailer (Right retailer).
a. Right Product
This strategy includes four main factors, namely aesthetics (design/model, shape, color, size, etc.), functional (according to the intent and purpose of the product), psychological supporting factors (such as brand image, producer image, and so on). , and services that support and accompany product sales.
b. Right Quantity
To get optimal results, a balance is needed between the amount of customer purchases and retail purchases, as well as between customer consumption needs and merchandise inventory needs from retailers.
There are two factors to consider in this regard. First, the right number of units, namely the right number of units/units of goods to be sold (kilo, dozens, meter, and so on).
The determination depends on the situation faced by consumers and producers (famine or harvest; recession or boom), and the purpose of purchase (resale, further processing, or self-consumption).
The second factor is the right size of the product, namely the right size of the merchandise (small, medium, large, or extra large). Determining the right size and according to customer needs will be able to affect their satisfaction.
c. Right Price
Right price is a price that consumers are willing to pay happily, and retailers are also willing to accept it with open arms, in order to provide satisfaction to customers and simultaneously create profits for retailers.
The right price does not only refer to the balance of market prices, but also must be competitive compared to competitors’ prices and attractive to customers.
In addition, retail prices must also be able to create repeat purchases from customers. Thus, it is necessary to continuously monitor any developments in market prices and competitors’ prices.
d. Right Time
Many people say that time is money, so it needs to be managed optimally. Therefore a retailer must know when consumers are willing to buy the goods they need.
Broadly speaking, when shopping for consumers there are four kinds of patterns that can present their own business opportunities. The four patterns include:
- Calendar time, for example the new school year for students and students. During that period, the products that sold the most were uniforms, notebooks, stationery, textbooks, school/college bags, and other school supplies.
- Seasonal time, for example during the rainy season, raincoats, umbrellas, jackets and so on are widely sold.
- A special time in a person’s life (birth, growing up, death, birthday, wedding, and so on). The increased use of special times opened up opportunities for shops selling special greeting cards and special gift items.
- Personal time, namely the time of a person related to his lifestyle.
e. Right Services
Customer service includes all forms of service presentation, actions and information provided by the seller to enhance the customer’s ability to realize the potential value contained in the core product that the customer purchases.
This component relates to two aspects, namely customer service features (how to provide services to customers) and customer service action (the quality of the service provider’s actions in providing services, presenting requested information, handling customer complaints, correcting errors or service weaknesses in the past , etc).
Read too The purpose of pricing according to experts
f. Right Place
Alternative retailer pricing. This component concerns the selection and determination of a strategic location (easy to reach, in a shopping center area or near a residential area, safe, etc.), beautiful and attractive interior and exterior design, spacious and comfortable space for customers to shop, adequate supporting facilities. adequate (parking, escalator and/or elevator, air conditioning, and so on), as well as other factors.
g. Right Appeal/Promotion
This component is a combination of activities presenting the right message to the right target through the right/appropriate media. Promotional messages should be focused on the target market that is used as a target, so that it does not spread to parties that have nothing to do with the delivery of the message.
The message conveyed should also be in accordance with reality, so as not to cause excessive consumer expectations or even deceive customers.