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How to Consider Price Changes - Using the RPC to Set Prices

Posted On - 18/10/2013 08:39:32

Three Worked Examples of Price Changes Using Real Data
This video covers how to actually use the information in the RPC to review and set prices.

Starting with the 'Don't Stock' tab the video goes through how to identify and consider products you don't yet stock that are giving other resellers good to high sales satisfaction. Clearly these are opportunities for you to increase your range and widen your opportunities to make money. If there is an easy place to start in using the RPC report this is it.

The video then moves on to review the 'Do Stock' tab. Using three different worked examples it explains in detail how to use the data in price setting. In particular, this session streses a simple standard approach to price review led by pricing consistent with maximised sales satisfaction.

Whether price changes involve increases or decreases, there will be an impact onto your business. Indeed, the business consequences of such changes are often overstated or underappreciated. So it's vital decisions are made as made rationally and not emotionally. To help with this the report contains a price change tool. This is a separate tab that embodies the relationship between percentage price changes and sales volumes to maintain profits or break-even. How to use this tool is a central part of all three worked examples given. And whilst the tool can't predict the future, it can provide you with numbers you can use to inform your assessment of what it might be.

To help, the approach is codified in a downloadable procedure. By simply referencing your price quartile with that delivering other indies the highest sales satisfaction, the procedure details exactly how to go about price setting. You can download your own copy of it by clicking: 'Guide to Peer Price Review'.

The session also addresses the impact of the Big Chains. Specifically, the session goes through how to decide when the Big Chains are relevant and if they are, how to use their pricing to your advantage.

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