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How to Use the RPC (Retail Price Comparison) to Set Prices

Posted On - 07/11/2013 12:31:14

Find Out How to Set Prices
To reap the rewards of taking part in the RPC we'd strongly suggest you go through it systematically looking for opportunities to change prices. And to help you do that, we've set out an approach in this video.

What's suggested is not a dictate – just a way you could go about assessing price changes. We're not telling you to change your prices, just to consider if it makes business sense to alter them. We're not encouraging you profiteer, just make sure your prices are fair when compared with other businesses just like you.

If you're comfortable interpreting large amounts of data and using it to set prices yourself that's fine. But if you're not or intrigued how sales satisfaction features in price setting then take a look at the video.

Our approach is clear. First concentrate on pricing fairly compared to peers. Then consider the influence of the Big Chains. We recommend this because it makes sense: other independents offer the same experience as you, the Chains something very different. This approach also helps you pin-point genuine opportunities for price competition. The video details this more.

Our method rests on using sales satisfaction lead pricing reappraisal. By understanding what prices correspond to the highest sales satisfaction, you can consider whether changing yours is appropriate. Watch the video for a detailed example of how we do this.

Changing prices is risky. Lowering or raising them could end in you losing money. To help you decide rationally the RPC includes a ‘Price Change Tool'. The tool helps you understand the business implications of making changes. It does this by taking your proposed price change and working out how much you need to sell to make the same profit as you did before the change. The video gives you an example of how the tool works.

Also see our complete online workshop on the Retail Price Comparison and how to use it to set prices.

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