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    The Role Of Price In Clothing Shops

    2015/2/6 16:24:00 14

    PriceClothingBusiness Skills

    We will often encounter this kind of situation. Store owners like to copy prices from competitors' stores. Once they find other people's prices are lower than those of their own stores, they will find the best excuse and excuse for their sales decline, and ask relevant departments to reduce the price of goods, or even blindly follow the price.

    But the shopkeeper seldom thinks, why is the price lower than me? Or do I have a lower price than others? How can I display and publicize the low price goods to the customers?

    I think price is not the price of time, but the price of time.

    Regular and regular selection of sensitive commodities or specific commodities, at least 3 months of multiple price adjustment and tracking (in fact, each time the price reduction products, each is a good price test), in the implementation of their own price strategy at the same time to study competitors' price strategy.

    I study price changes, and the analysis tool used is price elasticity.

    Price elasticity, also known as sensitivity coefficient, can be divided into sales sensitivity coefficient, sales sensitivity coefficient, gross margin sensitivity coefficient and so on, and its essence is basically the same.

    The sales sensitivity coefficient is only shown here.

    When price elasticity is less than -1, sales growth exceeds the rate of price decline, which is called sensitive commodity. The greater the negative value, the more sensitive; when price elasticity is between -1 and 0, sales increase, but the amplitude is lower than the price decline, which is called insensitive commodity.

    When price elasticity is greater than 0, prices fall and sales decline, which is called negative sensitive commodities.

    Anyone who has learned economics knows the law of diminishing marginal utility. It is still effective in price analysis. When we reduce the price to a certain extent, its marginal utility will tend to be 0. At this point, the price reduction will not stimulate sales.

    The negative price reduction of suicide is another matter.

    Similarly, we can use price elasticity to study the price reduction space of commodities, and also can be used to study the rising space. The reason is the same, but in essence, the negative sensitive commodities can be appropriately raised.

    While studying their own price changes, we also study the price elasticity based on the price changes of competitors by continuously collecting the DM of competitors.

    That is, in the formula of price elasticity, the price of the base period and the comparative period is

    compete

    Opponent's price changes.

    Sales are still our own sales.

    So we can get the price impact of competitors on our sales.

    After accumulating, we have enough data sensitivity.

    data base

    Then we see that prices have goals, directions and means.

    1. when we look at ourselves, we can know more clearly which commodities can raise the selling price, which commodity should lower the selling price and how much the adjustment should be.

    2., we have the basis for promoting the selection of products. We can choose different combinations of commodities according to the promotion goal. When we estimate the sales volume, we will be relatively accurate, avoiding the shortage of stocking or a large number of returns after the schedule.

    3., when we look at our competitors and face competition, we can choose to move the enemy, or choose to take the initiative to avoid blind prices.

    Actually, a lot has been done.

    Price

    After the elastic analysis, we will find that the price of each commodity will not be affected by the price of the competitor, which is usually not higher than 40%.

    Sometimes, some places do not even exceed 10%.

    Therefore, our store owners do not need to compete with their competitors' DM every time they start their schedule, loudly shouting to the purchasing department, "why can't we sell that price?"

    Or if our shopkeeper can point to a commodity, tell our purchasing department: "if this product can be sold at this price, how much sales or sales can we achieve?" and finally realized our prediction, so we will get more and more procurement trust and procurement support. Then what is the so-called "camp mining contradiction"?


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