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!

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