As we already discussed in our grocery retail store, there must be various items for the various customers, hence we will use different prices for the different customers because their choices, tests, and preferences vary according to their characteristics so the following pricing mix policies will be followed at our store.
Discount-oriented
pricing
Initially, when we will open the retail store we will give discounts in
order to attract customers to generate short-term sales, but these
discounts would be very much limited so that we may not occur losses. When the store is newly opened, it is necessary to attract the customers with some
innovative techniques and these techniques can be discounts, premiums, quality
goods,, and differentiations so on, because when stores are newly, open customers are
reluctant to buy unless they get something better or at lower prices than other
retailers.
Cost-oriented
pricing
Cost-oriented pricing
is used by adding per-unit merchandise costs, retail operating expenses, and
desired profit. This technique is the most common technique because it is
important for any retailer to cover the whole costs by charging the
customers in order to earn certain profits and we will also use this
technique.
Competitor-oriented pricing
We would use the
competitor prices as a guide because it is necessary to do the competitor
analysis, what prices competitors are charging, if they are lowering the prices
then we must lower them and if they increase the prices then we also need to
increase the prices. Most of the time prices are not changed due to changes in demand but because competitors alter the prices. So we would follow this
technique as well.
Price quality association
The price-quality association concept is about higher prices being related to high-quality goods
and low prices being related to low-quality goods. So yes, we would keep both,
higher and lower quality goods, and charge higher prices for high-quality goods
and lower prices for low-quality goods. As there are both two types of
customers the ones that can afford the quality goods because they don’t care
about the prices charged for the goods but what matters for them is the quality
of goods and the other type of customers are the poor because they don’t have
enough money to pay for the high-quality goods hence them limit themselves to
lower quality goods.
Flexible pricing
We would use flexible pricing, we would let customers bargain over prices and those who
will remain successful at bargaining will get at lower prices and vice versa.
Odd pricing
In the odd pricing,, retailers charge below the even rupee like 999, or 1099 because this makes the
impression on a consumer that the price is lower.