Allen Brothers Wholesale Distribution: Technology is Everything - Retail Merchandiser - Redcoat Publishing
Follow the link to check out another great article on Allen Brothers Wholesale Distribution featuring, among many other things, valuable insight from Allen Brothers Executive Officer and Principal Joe Shott (pictured in story) on the ever-changing face of the convenience retail industry.
Friday, May 27, 2011
Monday, May 23, 2011
Candy Price Increase Follow-Up: Now What? (Part-2)
By now, there should be an overall awareness that prices are on the rise. We can blame it on inflation, gas prices, economic woes, or any other of the numerous options at our disposal. Unfortunately, it's a way of life in this business. But let's not sulk about it. Instead we’ll discover solutions together.
If somehow you haven't taken notice of the hikes or adjusted your pricing, I encourage you to do so... today! Raising prices is never a desirable option; it’s the dirty secret that people in business simply don’t speak of. But the key is to take an aggressive approach and be ahead of the curve. When I say aggressive, I don’t mean go overboard and radically impose major price increases. Instead, be as organized as possible with special consideration taken to easing your customers into the changes.
With inflation on the rise and the price of gas and raw materials fluctuating daily, prices aren’t about to go back down anytime soon. It’s time now to begin the aggressive approach by incorporating frequent price increases at smaller percentages. You’ll find the transition will go more smoothly if, rather than increasing pricing by 20% to your customers in a single day, you take a strategic approach with 5% increases weekly over the course of a month to get to that final number. When all the other store owners increased by 20% overnight, you’ll still be 15% less expensive (even if just for a week) then all the other game in town. Sure, you will catch up to the total price in a relatively short period of time, but the transition for your customer will be less dramatic. Customers are more willing to accept smaller-sized, incremental price increases than they are to swallow the entire jump all at once.
We’ll revisit this topic again in an upcoming blog. Happy selling!
If somehow you haven't taken notice of the hikes or adjusted your pricing, I encourage you to do so... today! Raising prices is never a desirable option; it’s the dirty secret that people in business simply don’t speak of. But the key is to take an aggressive approach and be ahead of the curve. When I say aggressive, I don’t mean go overboard and radically impose major price increases. Instead, be as organized as possible with special consideration taken to easing your customers into the changes.
With inflation on the rise and the price of gas and raw materials fluctuating daily, prices aren’t about to go back down anytime soon. It’s time now to begin the aggressive approach by incorporating frequent price increases at smaller percentages. You’ll find the transition will go more smoothly if, rather than increasing pricing by 20% to your customers in a single day, you take a strategic approach with 5% increases weekly over the course of a month to get to that final number. When all the other store owners increased by 20% overnight, you’ll still be 15% less expensive (even if just for a week) then all the other game in town. Sure, you will catch up to the total price in a relatively short period of time, but the transition for your customer will be less dramatic. Customers are more willing to accept smaller-sized, incremental price increases than they are to swallow the entire jump all at once.
We’ll revisit this topic again in an upcoming blog. Happy selling!
Thursday, May 5, 2011
Candy Price Increase Follow-Up: Now What?
Information is power. The first step to addressing the candy price increase is informing you about the change. But what good is telling you about a problem without providing potential solutions. That's what today's post is all about. We'll address some potential ways to address the price changes in the upcoming posts, starting today!
Incorporate Loss-Leader Sales
In case you aren't familiar with the term loss-leader, this business keyword refers to a product sold at a low price (at cost or below cost) to stimulate other more profitable sales. With the rise in the cost of candy, the convenience store industry will need to become even more price conscious in daily operations. Incorporating a loss-leader sales promotion is a great way to disguise price increases in other areas. Pick an item whose cost is relatively stable, perhaps a beverage like a water bottle. Put it on sale at a knock-out low price to get your customers to buy that item with the other items that may have recently absorbed a price increase.
I don't know about you, but when I'm shopping a C-Store, the main price I pay attention to is the total. If you can hide a price increase with a popular promotion, you will keep your customers happy by being conscious of their needs. But remember, you need a wholesale distributor who WILL help you keep your customers happy. If you're looking for a great deal you can turn into a loss-leader promotion, check out the great deal featured below and in this month's Allen Brothers Flyer!
$2.95 for Crystal Geyser 24 Count Water, less than $0.13 per bottle!
Incorporate Loss-Leader Sales
In case you aren't familiar with the term loss-leader, this business keyword refers to a product sold at a low price (at cost or below cost) to stimulate other more profitable sales. With the rise in the cost of candy, the convenience store industry will need to become even more price conscious in daily operations. Incorporating a loss-leader sales promotion is a great way to disguise price increases in other areas. Pick an item whose cost is relatively stable, perhaps a beverage like a water bottle. Put it on sale at a knock-out low price to get your customers to buy that item with the other items that may have recently absorbed a price increase.
I don't know about you, but when I'm shopping a C-Store, the main price I pay attention to is the total. If you can hide a price increase with a popular promotion, you will keep your customers happy by being conscious of their needs. But remember, you need a wholesale distributor who WILL help you keep your customers happy. If you're looking for a great deal you can turn into a loss-leader promotion, check out the great deal featured below and in this month's Allen Brothers Flyer!
$2.95 for Crystal Geyser 24 Count Water, less than $0.13 per bottle!
Tuesday, May 3, 2011
Candy Price Increase
The cost of both chocolate and non-chocolate confectionary has been increased. Disruption in supply of raw materials like cocoa beans, sugar, and flour have forced major suppliers like Hershey, Nestle, MARS, and others to announce price increases anywhere between 8% to 13% respectively. Customers are asked to pay special attention to the increase in pricing on their invoices and adjust their retail accordingly.
For more information, please visit Allen Brothers Website and tour the News Room for more details.
For more information, please visit Allen Brothers Website and tour the News Room for more details.
Subscribe to:
Posts (Atom)