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Shattering The Price Myth

Posted On - 19/03/2013 15:23:41

This workshop tackles key pricing issues faced by independents. Commencing by setting out why price isn't everything and people choose to shop where they do for many reasons, the workshop goes onto set out why being low priced can easily destroy your business and conlcudes by explaining how independents have genuine price advantages over the Big Guys.


Part 1: Why People Choosen to Shop Where They Do

Why People Choose to Shop Where They Do
Retailing is simple: get 'em in, get 'em buying, get 'em back. But how do people choose to shop where they do? There are several factors they impact consumer choice. Using real examples this video sets out the major factors that influence consumer choice.





Part 2: The Cost of Being Low Priced

The Cost of Being Low Priced
Are there consequences of being "lowest price in town"? There most certainly are. It attracts the wrong type of customers and creates a vicious circle. It brings into doubt your expertise, professionalism and quality. It encourages price objections. It's a game of who has the deepest pockets. People want a fair price, not just the cheapest. Don't make price your "USP." Don't be a bargain basement.


Part 3: Beating the Big Guys

Beating the Big Guys
You have genuine pricing advantage on the Big Multiples. Their costs are so large their standard margin requirement negates any purchase price advantage they have through volume. From their report and accounts we can work out they mark up on average 100%. Even with 20% discount on your buying price you can still mark up 60% and price match. And when it comes to service, you can treat people as individuals. You can tailor offers according to who you're selling to there and then.


Shattering the Price Myth: End of Session Summary

Shattering the Price Myth: End of Session Summary
Price is never absent from consumer choice, but it is rarely the major determinant. Being low priced undermines your expertise, professionalism and quality. We know the Big Multiples are less price competitive than independent IT retailers. The issue is, it's not about being cheap, prices should be reasonable and fair in the range.




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