Profit Maximization Strategy Of Agents

Guests: Beijing fir Valley vision brand image design Co., Ltd. retail consultant Li Ai

Commodity pricing is the most sensitive interest in marketing strategy, and occupies a pivotal position in brand marketing strategy.

The price will not only change.

CFW: as a distributor, what criteria should be followed after the goods are taken from the manufacturer to ensure that the profits are maximized?

Li AI: commodity pricing is the most sensitive interest in marketing strategy, and occupies a pivotal position in brand marketing strategy.

The price will not only change the sales and distribution channels of commodities, but also affect the success or failure of agents in competition. Therefore, setting commodity prices can not simply consider costs, taxes and profits.

At the same time, we must take account of various factors, such as market, consumer and terminal channel.

Target price setting method

Cost is the premise of pricing.

The calculation method is "the original price plus a certain percentage", that is, setting the target price on the cost basis and forecasting the sales profit.

The reason why the cost pricing method is highly praised is that its calculation is simple and convenient, and the price is relatively stable. The agent can determine the expected profit margin in advance and take it as an additional benefit.

But simply considering the cost and interest factors of the seller, it is easy to fall into the predicament of the stagnation of performance.

In the market competition of competitors such as Lin, excellent agents only have foresight in formulating price strategies, so as to create brilliant achievements.

The real price setting method compares horizontally and keeps the same average with competitors.

However, powerful agents will never drift with the tide.

If you want to be bigger and stronger, you must be a leader in the industry.

Bidding price setting method

Take the initiative to put forward strong conditions for competitors and decide the price standard through bidding.

So far, shops have always been synonymous with profits from manufacturers and retailers.

However, with the progress of society and the development of economy, the new concept of changing from "seller's market to buyer's market" has become a hot topic in fashion retailing industry.

Therefore, the demand of consumers is undoubtedly the top priority in the pricing strategy of agents.

Perceived value pricing

We should attach importance to customers' understanding of prices, analyze historical prices of commodities, cater to market demand, find out the "best selling price bands" approved by consumers, and reverse calculate the two tier agents and their profits.

Demand price setting method

Adjust the price in time with the change of customer level, season, area and so on.

For example, a Japanese brand divides the whole country's shops into 6 price zones, and the highest prices in Tokyo, Kanagawa, Osaka and other first tier cities are the lowest in Miyagi, Yamagata, and Shimane.

This method of regional pricing avoids the disadvantages of calculating commercial interests simply, and takes into account the values of local consumers. Customer satisfaction is very high.

Commodity pricing is cumbersome and complex. It is not a stereotyped mathematical formula. Every agent should find a suitable price type according to the brand positioning of the agent.

Low prices may not always sell well.

If the price of high-grade commodities is too low, it will not bring economic benefits, but destroy the charm of the commodity itself and lose faith in consumers.

Prestige price

Brand strength and product quality are shown to consumers through high prices.

If the brand name product is too low, it will make consumers feel distrust, doubt the quality of the product, or even the authenticity of the brand.

Maintaining a high price can not only win consumers' trust, but also satisfy consumers' strong desire to show their prominent social status and prestige.

CFW: in the event of promotional activities, what is the specific basis (rule or formula) to make the promotional price scientifically?

Li Ai: for businesses, promotional activities seem to be an everlasting topic.

It is easy to reduce prices and increase sales volume, but will customers feel the benefits of lowering prices?

Promotion activities should not only focus on low prices, but more importantly, work hard to establish reasonable prices to attract consumers.

Therefore, promotion is not simply a price cut, nor is it simply to clear up inventory. It also has to formulate a clear price policy, otherwise it will easily fall into a state of losing control of sales interests and generate losses.

The best way to improve is to analyze past sales data and make reasonable pricing.

In sales promotion, we should find the best interests that can make customers feel reasonable and increase sales. When the price falls below this profit point, the sales volume will not continue to grow.

There was such an example: the price of a shop's shirts is 400 yuan, second weeks to 340 yuan, and next week 280 yuan...... according to this way of reduction, even if the final drop to tens of dollars, customers still wait for it to expect lower prices.

In addition, we must predict the effectiveness and benefits of promotion before making a sales promotion, and work out an effective pricing strategy.

First, determine the goals and profits of promotional activities.

Second, we must accurately select promotional products and maximize sales profits as far as possible.

Price reduction will lose part of the sales interest, but there must be some loss. Sales promotion must achieve the desired results, and no side promotion will lose its true value.

Selection of promotional items is an important part of promotional activities.

Before sales promotion, we need to refer to historical data to find products with obvious response.

Many dealers think that the purpose of promotion is to deal with bad stock. In fact, when choosing a target product, they do not always choose bad stock products for promotion, and consider whether it can attract customers into the store and raise the rate of joint purchase.

Finally, we need to find out the best form of promotion based on sales data, and determine whether it is a direct reduction, discount or discount.

"Different forms of the same period" is a popular marketing tool in Japan in recent years. For example, a large scale store in Shinjuku, Chi Po and other central shopping centers has adopted the form of multiple purchases and multiple delivery, while other small shops have achieved good results through the sale of single products.

Product prices directly affect the interests of enterprises. Only by the price strategy agreed by the market and consumers can the interests of enterprises be maximized.