Common Questions in Pricing
- Key Value Items: Which products are the must-wins in your store?
- Competitive landscape: How are you playing against your competitors?
- Category factors: Is your product vulnerable to forward buying? Is it a necessity?
- Channel positioning and preference: How is your ecom business competing with your other channels?
- Brand value: Is discounting hurting your brand? Can you better leverage your brand’s value?
- And of course Price elasticity: How do consumers respond to your price changes? What happens to related product sales?
How Do We Address These Challenges?
1) Measure Elasticity
- Base Price Elasticity
- Cross-Price Elasticity
- Promo Elasticity
- Price Thresholds
- Gap Analysis
2) Layer in Second-Order Effects
- Fixed Cost Leverage
- Volume Targets
- New Entrant Prevention
- Brand Positioning
- Cannibalization
3) Set Competitive Landscape
- Competitive Channel Mix
- Competitive Price Response
- Game Theory
- New Entrant Prevention
- Omni Channel Strategy
For more information on Penfield Retail Pricing success stories, please see our section, or Contact Us.